Slide 1: Financial Statements Release 2023
15 February 2024 Financial Statements Release 2023 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January– December 2023 • Financial development • Outlook and financial targets Kojamo plc`s Financial Statements Release 2023 2
Slide 3: Summary of January–December 2023
Summary of January– December 2023 Kojamo plc`s Financial Statements Release 2023 3
Slide 4: Total revenue and FFO increased in 2023 in a challenging operating environment
Total revenue and FFO increased in 2023 in a challenging operating environment • Total revenue, net rental income and FFO increased • Occupancy rate improved and tenant turnover decreased • The yield requirements for the valuation of the investment properties were increased by 0.43 percentage points
Slide 5: Operating environment
Operating environment General operating environment Industry key figures 2024E 2023E • The outlook for the global economy is uncertain; high Residential start-ups, units <19,500 <16,000 interest rates, weak consumer confidence as well as geopolitical tensions cast a shadow over the outlook of which
Slide 6: The situation in the rental market has improved
Operating environment The situation in the rental market has improved Population growth forecast 2022–2040, % • Urbanisation, decreasing average household size and Helsinki 22.4 demand focusing on central locations support the demand for Capital region* 25.9 rental apartments in the long term Jyväsk
Slide 7: Housing production and demand
Operating environment Housing production need 2020–2040, % Housing production and demand • The housing start-ups declined to a historically 22 Helsinki Tampere low level last year, and they are estimated to 43 3 ~35,000 Oulu Turku remain almost as low this year as well 3 apartments / 4 year Jyväskyl
Slide 8: Key figures 1–12/2023
Key figures 1–12/2023 total revenue net rental income funds from operations (FFO) 442.2 M€ 297.2 M€ 167.2 M€ (413.3 M€, +7.0%) (280.1 M€, +6.1%) (160.7 M€, +4.1%) fair value of investment profit excluding changes in properties gross investments value 1) profit/loss before taxes 8.0 Bn€ 190.7 M€ 183.
Slide 9: Ongoing development projects
Ongoing development projects Kojamo’s projects on map • 354 apartments** under construction in the Helsinki region • Costs of completing these is EUR 10.0 million • Owned plots enable starts of about 2,300 apartments • For the time being, we will not make new investment decisions due to the uncertai
Slide 10: Housing stock and customer distribution
Housing stock and customer distribution Housing stock by apartment type, % • Kojamo’s housing stock meets the 5.0 demand nicely 23.8 studios 22.0 • All age groups are well represented one bedroom among the tenants two bedroom three bedroom or larger 49.1 Customers by household type, % Customers by a
Slide 11: Key figures of sustainability 1–12/2023
Key figures of sustainability 1–12/2023 SUSTAINABILITY PROGRAMME We create better urban housing Result Target Result Target CO2 emissions per apartment, My Lumo – utilisation rate, % 86 90 t CO2e/apartment, reduction -16.9 -4.0 %* NPS 50 40 Energy consumption, kWh/m3 35.3 n/a 33 55 Waste recycling r
Slide 12: Financial development
Financial development Kojamo plc`s Financial Statements Release 2023 12
Slide 13: Total revenue and net rental income increased
Total revenue and net rental income increased • Total revenue increased due to the growth of property portfolio as well as due to the development of rents and the financial occupancy rate • Net rental income increased due to higher total revenue and lower repair costs but was weakened by higher prop
Slide 14: Profit before taxes and FFO
Profit before taxes and FFO • FFO grew compared to previous year. The increase in FFO was especially attributable to the improvement in net rental income and the profit from the repurchase of bonds Profit before taxes, M€ Funds From Operations (FFO), M€ and € / share Profit excluding changes in valu
Slide 15: Financial occupancy rate improved
Financial occupancy rate improved • Financial occupancy rate was 93.0 (92.0) per cent during the financial year • Occupancy rate increased to 94.0 (93.0) per cent during the last quarter • Tenant turnover decreased compared to the previous year Financial occupancy rate, % Tenant turnover, % excludin
Slide 16: Development of Like-for-Like rental income
Development of Like-for-Like rental income The past 12 months compared to the previous 12-month period Development of Like-for-Like rental income as at 31 December 2023 +0.6% -0.1% +1.9% +1.4% Impacts of Impact of Other Like-for-Like rents and water charges occupancy rate impacts rental income growt
Slide 17: Investments
Investments • We will not make new investments nor will we launch new modernisation projects for the time being • Ongoing projects will be completed as agreed • We will focus repairs to support renting of apartments Gross investments and sales of Modernisation investments and investment properties,
Slide 18: The value of investment properties was EUR 8.0 billion
The value of investment properties was EUR 8.0 billion Changes in fair value M€ 1–12/2023 10–12/2023 • The net result from the fair valuation of Change in yield requirement -815.5 -661.3 investment properties in 2023 was EUR -295.4 Change in net rental income 305.9 330.8 million, of which the fourth
Slide 19: Equity ratio and Loan to Value (LTV) at a strong level
Equity ratio and Loan to Value (LTV) at a strong level • Equity ratio and Loan to Value (LTV) remained strong • Moody’s affirmed Baa2 rating in December. There’s a significant buffer to LTV limit of 50 per cent Equity ratio, % Loan to Value (LTV), % 43.7 44.6 49.0 40.5 41.4 46.9 45.6 45.3 37.7 44.5
Slide 20: 2024 maturing loans are covered
2024 maturing loans are covered • The EUR 425 million syndicated loan made in the autumn was undrawn at the end of the year • After the review period, we issued a new EUR 200 million bond which will be used for refinancing of loans maturing in 2025 The Group’s liquidity, M€ Financing key figures 31
Slide 21: Key figures per share
Key figures per share • Key figures per share was especially impacted by the fair value decrease of the investment properties Equity per share, € EPRA NRV per share, € -5.7% -5.5% 22.04 19.53 18.45 17.25 17.21 15.55 16.00 14.67 13.39 12.51 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Kojamo plc
Slide 22: Outlook and financial targets
Outlook and financial targets Kojamo plc`s Financial Statements Release 2023 22
Slide 23: Outlook for Kojamo in 2024
Outlook for Kojamo in 2024 Kojamo estimates that in 2024, the Groupʼs total revenue will increase by 4–8 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2024 will amount to between EUR 154–166 million, excluding non-recurring costs. The outlook is based on the managemen
Slide 24: Strategic targets
Strategic targets Actual Actual Actual Actual Key figure Target 2023 2022 2021 2020 Annual growth of total 7.0 5.5 2.0 2.3 4–5 revenue, % Annual investments, M€ 190.7 501.6 356.9 371.2 200–400 FFO/total revenue, % 37.8 38.9 39.1 39.5 > 36 Loan to Value (LTV), % 44.6 43.7 37.7 41.4 < 50 Equity ratio,
Slide 25: Summary
Summary Total revenue, net rental Saving programme is Occupancy rate income and FFO proceeding as planned improved from previous increased year Balance sheet and Population grows in financial key figures have cities, and the supply of remained strong new apartments will decrease significantly Kojamo
Slide 26: Thank you!
Interim Report January-March 2024 Thank you! to be published on 8 May 2024 Contact details: CEO Jani Nieminen, tel. +358 20 508 3201 CFO Erik Hjelt, tel. +358 20 508 3225 Director, Treasury & Investor Relations Niina Saarto, tel. +358 20 508 3283 www.kojamo.fi Kojamo plc`s Financial Statements Relea
Slide 27: Appendix
Appendix Kojamo plc`s Financial Statements Release 2023 27
Slide 28: Saving programme
Saving programme • We launched a saving programme in August which aims to achieve total savings of EUR 43 million in costs and investments in 2024, of which the share of costs is estimated to be EUR 18 million • The change negotiations started as part of the saving programme were concluded. As a res
Slide 29: Immigration and its impact
Immigration and its impact • In addition to migration within the country, immigration that has increased in the 2020s will advance urbanisation. • Immigration is heavily focused on the capital region and other large cities 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2011 2012 2013 2014 2015 201
Slide 30: Kojamo's apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of 4.5 commercial Fair 3.5 Helsinki region Number Fair Fair 4.1 premises value, Financial Share of of apart- value, value, 5.1 Region and other (EUR occupancy revenue, ments, (EUR (EUR / leased thousand rate, %3) % 5.5 Tampere region unit
Slide 31: 354 apartments under construction
354 apartments under construction • During the review period, 0 (985) apartments were acquired, 73 (0) sold and 1,450 (1,348) completed • During the period, construction of 0 (477) apartments was started Development of apartment portfolio, units Apartments under construction, units +3.5% -80.4% 40,6
Slide 32: Our strategy
Our strategy Megatrends Mission Values We create better urban housing. Urbanisation & internationalisation Happy to serve Vision Ageing population & We are the property market frontrunner and smaller family sizes the number one choice for our customers. New technologies & Strategic focal points digi
Slide 33: Strategic focal points
Strategic focal points Delivering the Strong growth Operational best customer excellence experience We offer easy and effortless We seek profitable growth with We create competitiveness and services for our customers and multi-channel approach and profitability through industry- create added value t
Slide 34: Sustainability programme guides our systematic sustainability work
Sustainability programme guides our systematic sustainability work STRATEGIC FOCAL POINT: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT We create better urban housing Ensuring long-term profitability and Sustainable and responsible operations Transparent communications and business growth reporting Koj
Slide 35: Our sustainability work is proceeding
Our sustainability work is proceeding • We took big steps towards the achievement of the 2030 carbon neutrality goal of our responsibility program by concluding a demand flexibility agreement with Vantaan We are commited to complying Energia to optimize our energy use; we get district heating with t
Slide 36: Key sustainability figures 2023
Key sustainability figures 2023 Total energy consumption Carbon footprint 35.3 8.9 3.2 0.8 kWh/m3 (35.3) MWh/apartment (8.9) kg CO2e/m3 (3.9) t CO2e/apartment (1.0) Share of carbon-neutral Apartments completed Apartments under Waste recycling rate energy of energy since 2016 with an E-value construc
Slide 37: Sustainability is visible in our every day life
Sustainability is visible in our every day life Sustainable cities The most competent A responsible personnel and a corporate citizen We are committed to the UN Sustainable Development Goals (SDGs) and carbon-neutral energy use in our property portfolio by 2030 dynamic place to work Our anti-grey ec
Slide 38: Sustainability commitments and reporting
Sustainability commitments and reporting Our sustainability Our sustainability reporting and Our commitments recognitions memberships Our target is carbon- We participated in the global neutral energy use in our GRESB sustainability 78/100 assessment properties by 2030 We apply EPRA’s Best Practice
Slide 39: Dividend policy
Dividend policy Kojamo’s objective is to be a stable Dividend history dividend payer whose annual dividend payment will be at least 60 60% 60% 61% 60% per cent of FFO, provided that the Group’s equity ratio is 40 per cent or 0.38 0.39 0.34 0.37 more and taking account of the company’s financial posi
Slide 40: Kojamo's ten largest shareholders
Kojamoʼs ten largest shareholders (as at 31 December 2023) Shareholder Number of shares % of shares Development of the number of the shareholders 13,201 13,635 13,452 Nominee-registered shareholders 81,172,598 33.7 12,047 12,587 1. Heimstaden Bostad AB 49,389,283 20.0 Ilmarinen Mutual Pension Insura
Slide 41: Key figures
Key figures 10–12/2023 10–12/2022 Change, % 1–12/2023 1–12/2022 Change, % Total revenue, M€ 113.5 107.9 5.2 442.2 413.3 7.0 Net rental income, M€ 75.5 72.4 4.3 297.2 280.1 6.1 Net rental income margin, % 66.5 67.1 67.2 67.8 Profit/loss before taxes, M€ -119.5 -748.3 84.0 -112.3 -499.8 77.5 Gross inv
Slide 42: Consolidated income statement
Consolidated income statement M€ 10–12/2023 10–12/2022 1–12/2023 1–12/2022 Total revenue 113.5 107.9 442.2 413.3 Maintenance expenses -30.0 -26.8 -115.7 -103.1 Repair expenses -8.0 -8.6 -29.3 -30.2 Net rental income 75.5 72.4 297.2 280.1 Administrative expenses -13.2 -13.4 -45.6 -43.1 Other operatin
Slide 43: Balance sheet
Balance sheet M€ 31 Dec 2023 31 Dec 2022 Non-current assets Intangible assets 0.6 0.7 Investment properties 8,038.8 8,150.2 Property, plant and equipment 28.0 28.4 Investments in associated companies 2.0 1.5 Financial assets 0.8 0.7 Non-current receivables 6.5 6.7 Derivatives 29.8 53.8 Deferred tax
Slide 44: Balance sheet
Balance sheet M€ 31 Dec 2023 31 Dec 2022 Equity attributable to shareholders of the parent company Share capital 58.0 58.0 Share issue premium 35.8 35.8 Fair value reserve 11.2 43.0 Invested non-restricted equity reserve 164.4 164.4 Retained earnings 3,356.4 3,541.4 Equity attributable to shareholde
Slide 45: Financial key figures
Financial key figures 31 Dec 2023 30 Sep 2023 30 Jun 2023 31 Mar 2022 31 Dec 2022 Equity ratio, % 44.5 45.0 45.3 44.5 45.3 Interest cover 3.2 3.4 3.6 3.7 3.9 Coverage ratio 3.6 3.9 4.1 3.7 3.8 Loan to Value (LTV), % 44.6 44.3 43.8 42.9 43.7 Hedging ratio, % ¹⁾ 93 86 86 84 84 Average interest rate, %
Slide 46: Important information
Important information This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securitites in any jurisdiction. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitme