Presentation Q4 2010 ENG FINAL...Fazer Amica Ltd PKC Group Honeywell Ltd Pöyry Group...
Transcript of Presentation Q4 2010 ENG FINAL...Fazer Amica Ltd PKC Group Honeywell Ltd Pöyry Group...
TECHNOPOLIS GROUP GROUP Q4/2010
Technopolis Group
• A profitable growth company
• A real estate-service hybrid
• Business environments for knowledge-intensive companies
• Our specialty is the creation, • Our specialty is the creation, management and growth of innovation environments
• A scalable concept that we will copy/paste internationally
The Technopolis Concept
The Technopolis Network
• 1 300 customers employing roughly 20 000 people
• 18 knowledge-intensive campuses operating as a chain
• 594 100 m2 of space in use and under construction
• High-quality business environments from 10 m2 to 40 000 m2
Highlights• Operational environment in Finland improved significantly in H2/2010
• In H2/2010 occupancy improved +1,6 percentage units to a good level of 94,4 %
• Net sales and EBITDA satisfactory and on target
• Domestic growth under construction in HMA, Kuopio and Tampere totaling over 30 350 m2
• Technopolis Ülemiste acquisition closed on October 2010, going well
• Russian market recovering, Pulkovo pre-let rate at 65 % and we aim to fill it in 2011
• We’re forecasting 9 - 11 % growth in both sales and earnings
Key Figures Q4/2010
• Net sales EUR 81.2 million (EUR 76.4 million in Q4/2009), growth 6.3 %
• EBITDA EUR 41.4 million (EUR 40.0 million), growth 3.6 %
• Operating profit rose to EUR 43.0 million (EUR 2.3 million), growth 185,8%
• Financial occupancy rate was 94.4 % (94.4 %)
• Equity ratio was 37.4 % (37.3 %)
• Earnings per share (diluted) were EUR 0.38 (EUR -0.13)
Financial Occupancy Rate
92,5 %
95,0 %
97,5 %
100,0 %
GROUP SUOMI OULU HMA JKL KUOPIO LPR TRE TALLINN
Q4-2009 94,4 % 94,4 % 93,5 % 95,7 % 91,0 % 96,6 % 93,4 % 96,8 %
Q4-2010 94,4 % 94,5 % 91,7 % 98,0 % 94,6 % 96,3 % 94,4 % 96,1 % 93,5 %
85,0 %
87,5 %
90,0 %
Net Yields, %
Jyväskylä
HMA
Oulu
FINLAND
GROUP
TALLINN
Tampere
Lappeenranta
Kuopio
0,00 % 2,00 % 4,00 % 6,00 % 8,00 % 10,00 %
Sales & Earnings
70
73
75
78
80
83
85
Q4/2009 Q4/2010
Net Sales, EUR million
30
33
35
38
40
43
Q4/2009 Q4/2010
EBITDA, EUR million
Q4/2009 Q4/2010Q4/2009 Q4/2010
39,4 40,3
-37,1
-40-30-20-10010203040
Q4/2009 2,3 Q4/2010 43,0
Operating Profit, EUR million
Operating profit without change in fair valueChange in fair value of investment properties
+2,7
181920212223
Q4/2009 Q4/2010
PRO FORMA: Direct Result, EUR million
Balance Sheet
650
700
750
800
Q4/2009 Q4/2010
Total Assets & Liabilities, EUR million
550
600
650
700
750
Q4/2009 Q4/2010
Fair Value of Investment Properties, EUR million
Q4/2009 Q4/2010 Q4/2009 Q4/2010
1,0 %
1,5 %
2,0 %
2,5 %
Q4/2009 Q4/2010
Average Interest Rate
36,0
36,5
37,0
37,5
38,0
Q4/2009 Q4/2010
Equity Ratio %
Technopolis Sites by Region
30 %
11 %
9 %
4 %
5 %
8 %
Oulu
HMA
Tampere
Kuopio
Jyväskylä
Lappeenranta
• Fair market value of investment properties* and properties under construction 31.12.2010 EUR 788 million
• Net market yield of investment properties 31.12.2010 7,99% (8,07%)
• Fair market value change impact on operating profit: EUR 2,7 million (EUR -37,1 million)
* includes fair value of shares and investments in associates
21 %12 %
11 % Lappeenranta
St. Petersburg
Tallinn
Customer Breakdown
24 %
14 %
11 %
5 %
Other Industries
Services
Electronics
IT Services
16 %
16 %
14 %
14 % IT Services
Public Sector
Software
Life Science
Largest Customers
Customer Customer
Aalto University Logica Suomi Ltd
ARK Therapeutics Ltd Microlink Eesti Ltd
Aspocomp Oulu Ltd NetHawk Ltd
Digia Plc Nokia Plc
Fazer Amica Ltd PKC Group Fazer Amica Ltd PKC Group
Honeywell Ltd Pöyry Group
Itä-Suomi University Sasken Finland Ltd
Jyväskylä University TeliaSonera Finland Plc
Kemira Plc Tieto Corporation
Kesko Plc VTT Technical Research Center of Finland
- As of 31.12.2010 the 20 largest customers were renting 34 % of the company’s space.- No single company generates more than 6,0 % of the company’s revenue.
Pipeline
Project Status City Year m2 MEUR Occupancy
St. Pete Pulkovo 1 comissioned St. Pete Q2/2010 24 100 52,3 65 %*
Finn-Medi Campus under const. Tampere 11/2011 12 900 29,6 91 %
Ruoholahti 2 under const. Helsinki 5/2012 9 900 27,7 14.4 %
Hermia 15B under const. Tampere 1/2012 4 850 10,8 54 %
Helsinki-Vantaa 5B under const. Vantaa 5/2011 2 700 6,0 75 %
Innova 2 under const. Jyväskylä 2/2012 9 200 19,8 30%
Yliopistonrinne 2 Planning Tampere 9/2012 7 900 22,5 25%Yliopistonrinne 2 Planning Tampere 9/2012 7 900 22,5 25%
Total 71 550 168,7
Project Status CityEstimated
startm2
Pulkovo 2 Planning St. Pete 2011-2012 22 400Technopolis Ülemiste 1 Planning Tallinn 2011 7 500Viestikatu 2 B Planning Kuopio 2011 3 600
Total 33 500
* Pre-let rate
Please note, all spaces in floor-m2
Pulkovo Phase 1, St. Petersburg
• Started 8/2008• EUR 52,3 million cost
projection• 24 100 m2 total space• Focus on ICT & software• Focus on ICT & software• 65 % pre-lets• Opened September 2010• Site now fully registered
Finn-Medi Campus, Tampere
• Started 5/2010
• EUR 29,6 million cost projection including parking
• 12 900 m2 total space
• 91% binding pre-lets• 91% binding pre-lets
• Projected completion 11/2011
Ruoholahti 2, Helsinki
• Started 11/2010
• EUR 27,7 million cost projection including parking
• 9 900 m2 total space• 9 900 m total space
• Occupancy rate 14,4 %
• Estimated completion 5/2012
Hermia 15B, Tampere
• Started 11/2010
• EUR 10,8 million cost projection including parking
• 4 850 m2 total space• 4 850 m2 total space
• 54 % binding pre-lets
• Projected completion 1/2012
Helsinki-Vantaa, Phase 5B
• Started 6/2010
• MEUR 6,0 cost projection
• 2 700 m2 total space
• 75 % binding pre-lets• 75 % binding pre-lets
• Projected completion 5/2011
Innova 2, Jyväskylä
• Started 1/2011
• MEUR 19,8 cost projection including parking
• 9 200 m2 total space• 9 200 m2 total space
• 30 % binding lets
• Projected completion 2/2012
Yliopistonrinne 2, Tampere
• Estimated start 4/2011
• EUR 22,5 million cost projection including parking
• 7 900 m2 total space• 7 900 m2 total space
• 25 % binding lets
• If started 4/2011, projected completion 9/2012
2011 Outlook
• Economy and markets recovering
• +9 - 11 % guidance for both 2011 net sales and EBITDA
• Looking to fill Pulkovo & consolidate Technopolis Ülemiste
Strategic Financial Targets to 2015
• Growth 10 % on average per annum
• International sales 25 % of revenues by 2015
• Operating centers in 2-3 new European countries
• EBITDA over 50 % of net sales per year
• Long-term minimum equity ratio target 35 %
• Dividend payout 40-50 % of net profit (excluding
valuation changes)
Appendices: Additional Data
Shareholders on Jan 24, 2011Major Registered Shareholders
% of share capital
Number of shares
Varma Mutual Pension Insurance Company 16,22 10 279 371Ilmarinen Mutual Pension Insurance Company 8,32 5 272 725City of Oulu 4,83 3 062 925City of Tampere 3,09 1 956 649OP-Pohjola Group (indirect holding) 4,12 2 611 475Jyrki Hallikainen and Kickoff Oy 2,11 1 338 000The Finnish Cultural Foundation 1,12 712 693ODIN Finland Fund 1,08 686 066ODIN Finland Fund 1,08 686 066SITRA Finnish National Fund for Research and Development 1,05 666 036Laakkonen Mikko 1,01 638 714Total 42,95 27 224 654Cities Total 10,52 6 669 483
Nominee Registered 34,34 21 762 992
BNP Paribas Investment Partners indirect holding June 1, 2010 > 10,00 6 579 000
All Shares Total 100,00 63 385 044
Ownership Structure Jan 24, 2011
1,6 % 4,9 %
2,2 %
3,9 %
1,4 %
7,4 %
% of Shares and Votes1 - 1 000 shares, 2365 holders
1 001 - 5 000 shares, 1403 holders
5 001 - 10 000 shares, 200 holders
10 001 - 50 000 shares, 132 holders
50 001 - 10 0000 shares, 14 holders
• Number of registered shareholders 4157
• Ownership concentrated to largest shareholders
• ~65% of holdings domestic and ~35% international or nominee registered
• January 24, 2011 the market capitalization totaled EUR 267,5 million
• Technopolis is included in FTSE EPRA/NAREIT Global Real Estate Index
77,0 %14 holders
100 001 - 500 000 shares, 24 holders
500 001 - shares, 19 holders
Lease Portfolio Structure
15 %
20 %
25 %
30 %
35 %
40 %
45 %
50 %
At the end of the period under review, the open-ended leases that could be terminated and renegotiated during the following 12 months covered a total of 43,3 % (46,1 % Q4/2009) of the entire property portfolio.
As of the end of the period the average lease period was 23 (21) months
0 %
5 %
10 %
15 %
0-3 months 3-6 months 6-9 months 9-12 months >12 months
Q4/2009 Q4/2010
Equity Ratio
37,5 %
40,0 %
42,5 %
45,0 %
30,0 %
32,5 %
35,0 %
37,5 %
Q4/07 Q4/08 Q4/09 Q4/10
Interest Coverage Ratio and Loan to Value
3,0
4,0
5,0
Interest Coverage Ratio
40,0 %
60,0 %
Loan to Value
0,0
1,0
2,0
3,0
Q4/2009 Q4/2010
0,0 %
20,0 %
40,0 %
Q4/2009 Q4/2010
Net Rental Yield %
7,50 %
7,75 %
8,00 %
Net Rental Yield % = Total Rental Income from Investment Properties-Direct Costs Fair Market Value of Investment Properties
7,00 %
7,25 %
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10
Breakdown of Loans
8 %
3 % 0 %
Total interest-bearing liabilities Q4/2010 EUR 457.9 million
89 %
Bank Loan Leasing Debt Commercial papers Cheque Limit + others
Covenants and Bank Guarantees
13 %
5 %
28 %54 %
Total interest-bearing liabilities Q4/2010 EUR 457.9 million
Loans Requiring Bank Guarantees with Covenants
Loans Requiring Bank Guarantees without Covenants
Loans with Covenants
Loans without Covenants or Bank Guarantees