TECHNOPOLIS PLC FINANCIAL STATEMENTS RELEASE February 3, 2017 at 9:00 a.m. Technopolis Group Financial Statements for 2016 Stable Full-Year Performance - Net sales EUR 172.1 (170.6) million, up 0.9% - EBITDA EUR 93.1 (93.0) million, up 0.1% - On a constant currency basis, net sales were up 1.8% and EBITDA was up 1.2% - Financial occupancy rate 93.4% (94.6%) - Earnings per share EUR 0.33 (0.33) - Direct result (EPRA) EUR 52.6 (55.0) million, down 4.4% - Direct result per share, diluted (EPRA) EUR 0.40 (0.45) - Net asset value per share (EPRA) EUR 4.24 (4.09) - The Board of Directors proposes a dividend of EUR 0.12 per share
| 10-12/ | 10-12/ | 1-12/ | 1-12/ | |||||||||||||
| Key Indicators | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Net sales, EUR million | 44.8 | 41.7 | 172.1 | 170.6 | ||||||||||||
| EBITDA, EUR million | 22.4 | 20.1 | 93.1 | 93.0 | ||||||||||||
| Operating profit, EUR million | 20.8 | 25.7 | 89.3 | 88.9 | ||||||||||||
| Net result for the period, EUR million | 11.9 | 17.2 | 52.4 | 50.0 | ||||||||||||
| Earnings/share, EUR | 0.08 | 0.13 | 0.33 | 0.33 | ||||||||||||
| Cash flow from operations/share, EUR | 0.46 | 0.52 | ||||||||||||||
| Equity ratio, % | 41.5 | 39.3 | ||||||||||||||
| Equity/share, EUR | 3.95 | 3.79 | ||||||||||||||
| Return on capital employed (ROCE), % | 5.6 | 6.1 | ||||||||||||||
| EPRA-based Key Indicators | 10-12/ 2016 | 10-12/ 2015 | 1-12/ 2016 | 1-12/ 2015 | ||||||||||||
| Direct result, EUR million | 12.7 | 16.2 | 52.6 | 55.0 | ||||||||||||
| Direct result/share, diluted, EUR | 0.10 | 0.13 | 0.40 | 0.45 | ||||||||||||
| Net asset value/share, EUR | 4.2 | 4.1 | ||||||||||||||
| Net rental yield, % | 7.4 | 7.7 | ||||||||||||||
| Financial occupancy rate, % | 93.4* | 94.6* | ||||||||||||||
* 12/2016: 13,000 m² under renovation. 12/2015: 16,700 m² under renovation. The EPRA-based (European Public Real Estate Association) direct result does not include unrealized exchange rate gains and losses, fair value changes or any non-recurring items, such as gains and losses on disposals. The new guidelines of the European Securities and Markets Authority (ESMA) regarding Alternative Performance Measures (APMs, performance measures not based on financial statements standards) entered into force on July 3, 2016. Technopolis reports APMs, such as EPRA performance measures, to reflect the underlying business performance and to enhance comparability between financial periods. APMs may not be considered as a substitute for measures of performance in accordance with the IFRS. Share related indicators have been adjusted for the rights issue in fall 2016. Future Outlook Technopolis expects its net sales and EBITDA to improve from 2016 based on the company’s current investment property portfolio and foreign exchange rates.
The Group’s financial performance depends on the development of the overall business environment, customer operations, financial markets, market yields, and exchange rates. Furthermore, any changes in the property portfolio may have an impact on the guidance. Keith Silverang, CEO: “If we remember 2016 for anything, it will be for unpredictability. The FED’s interest rate hike was one of the few hits the market had actually anticipated. However, low interest rates and excessive liquidity are still driving more capital into the real estate sector.
For Technopolis, it was another action-packed year. We saw the opening of our flagship UMA Workspace in Helsinki, the acquisition of our first Swedish campus in Gothenburg, a successful 124 million euro rights issue, the completion of our Yliopistonrinne CBD campus in Tampere and Delta in Vilnius, as well as the launch of new growth projects in Tallinn and Helsinki, to name a few of this year’s highlights.
The year was operationally solid, with modest top line growth of 0.9%, EBITDA growth of 0.1% and healthy occupancy at 93.4%. There was a significant increase in service volumes of 10.6%, with penetration of 13.0%, and EBITDA jumping from EUR 0.8 million in 2015 to 2.1 million in 2016. We expect this trend to continue in 2017.
In the fourth quarter, we proceeded with the integration of the Gårda campus in Gothenburg and divested our Lappeenranta operations and Finnmedi campus in Tampere. The expansion of our Vilnius campus was being completed in December, with pre-occupancy over 85% and final fit-outs underway. In Helsinki and Tallinn, construction of new projects is proceeding as planned.
Thanks to the rights issue and divestitures, our financial liquidity is strong. We will now proceed with the paying down of maturing debt and focus on finding new value-creating investment opportunities. At the same time, we will continue divesting non-core assets in Finland. As a result, we expect our capital structure and related indicators such as equity ratio and loan to value to continue improving in the coming months. The fair values of the investment portfolio remained fairly stable throughout the year.
The shared economy has now clearly found the real estate sector and the winners will be of the players that provide the flexibility and efficiency that customers are demanding. Technopolis has successfully built a scalable service platform. We will continue to develop our concept, services and campus network to meet customer needs as the forces behind the shared economy intensify. That means reshaping our campus portfolio through strategic acquisitions and divestitures, increasing the relative share of coworking solutions in our mix and boosting service sales and earnings.” Full version of Technopolis Plc’s Financial Statements Release 2016 is attached. The webcast briefing in English for investors, analysts and media will be held today at 10:00 a.m. Finnish time. The link to the webcast is www.technopolis.fi/webcast .
Additional information:
Keith Silverang CEO Tel. +358 40 566 7785 Technopolis provides the best addresses for success in six countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 20 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 1,700 companies and their 50,000 employees in Finland, Sweden, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on Nasdaq Helsinki.
