Slide 1: Financial Statements Release 2018
14 February 2019 Financial Statements Release 2018 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of year 2018 • Financial development • Outlook, financial targets and dividend policy Lauri Korpisen katu 10, Vantaa Kojamo plc's Financial Statements Release 2018 2
Slide 3: Summary of year 2018
Summary of year 2018 Kojamo plc's Financial Statements Release 2018 3
Slide 4: Operating environment: general
Operating environment General operating environment • Kojamo is affected particularly by the situation in the residential property market and development in the Finnish growth centres, as well as macro- Business environment 2020E 2019E economic factors key figures • As more trade barriers are set up
Slide 5: Operating environment: industry
Operating environment Industry operating environment Apartment prices Industry key figures 2019E 2018 • Development of the housing markets and apartment prices continue to diverge between cities (Pellervo Economic Residential start-ups, units 39,000 44,000 Research (PTT)) Building permits granted, a
Slide 6: Operating environment: influence of urbanisation
Operating environment Influence of urbanisation Share of rental The popularity of rental housing increases Population Area household-dwelling growth forecast • The changing living preferences of Finnish people are units strictly tied to major trends, such as urbanisation, the aging 2018–2028 2010 20
Slide 7: Successful first year as a listed company
Successful first year as a listed company • The strategy implementation proceeded significantly • FFO was EUR 116.4 (107.8) million, showing 8.0% growth. during the year: IPO in June, Eurobond, significant portfolio Q4: EUR 34.7 (29.1) million transactions • The financial occupancy rate improved and
Slide 8: Of the apartments' fair value 98.3% in the seven main urban regions in Finland
Of the apartments’ fair value 98.3% in the seven main urban regions in Finland Apartment distribution Fair value distribution, % Helsinki region 57.2% Helsinki region 67.6% Tampere region 14.0% Tampere region 11.2% Turku region 5.3% Turku region 4.6% 34,713 EUR 5.1 Oulu 6.4% apartments Bn Oulu 3.9%
Slide 9: The number of Lumo apartments increased by 8% in 2018
The number of Lumo apartments increased by 8% in 2018 • At the end of the year, the Lumo segment included 33,484 apartments • The number of VVO apartments was 1,229 • Kojamo’s apartment portfolio comprised of 34,713 (34,383) apartments in total 33,484 31,108 31,018 28,716 19,526 20,668 20,044 20,749
Slide 10: Financial development
Financial development Kojamo plc's Financial Statements Release 2018 10
Slide 11: Total revenue and profit increased
Total revenue and profit increased Total revenue, M€ Profit before taxes, M€ Change in the fair value of investment properties Other items +6.5% 370.9 +4.0% 356.5 351.5 358.8 346.6 337.0 289.7 277.3 266.7 224.7 126.4 140.5 149.8 146.5 154.4 75.9 120.3 163.3 126.2 127.5 75.9 70.3 26.2 2013 2014* 2015
Slide 12: Funds From Operations (FFO) increased by 8%
Funds From Operations (FFO) increased by 8% Funds From Operations (FFO), M€ FFO per share, € 1) +8.0% +4.3% 112.2 116.4 107.8 0.49 0.48 0.47 2016 2017 2018 2016 2017 2018 Changes in the total number of Kojamo shares have an impact on relative development of FFO per share. 1) Key figures have been ad
Slide 13: In Lumo segment, total revenue and net rental income increased significantly
In Lumo segment, total revenue and net rental income increased significantly Total revenue, Lumo segment, M€ Net rental income, Lumo segment, M€ +13.0% +13.1% 227.5 347.6 201.2 307.2 190.3 291.1 134.6 208.8 176.4 111.8 174.3 101.6 2013 2014* 2015 2016 2017 2018 2013 2014* 2015 2016 2017 2018 *As of
Slide 14: Investments in Lumo segment continued
Investments in Lumo segment continued Gross investments and sales of investment Modernisation investments and repairs, M€ properties, M€ Gross investments Sales of investment properties Modernisation investments Repairs 696.0 92.3 83.8 78.6 367.3 365.2 68.4 223.2 200.5 235.0 46.5 61.0 59.1 48.4 49.5
Slide 15: The value of investment properties increasing in line with strategy
The value of investment properties increasing in line with strategy Fair value of investment properties, M€ 1) Number of rental apartments by valuation classes (at the end of the review period) +8.1% (at the end of the review period) 5,093.2 4,710.2 34,383 34,713 4,298.9 3,999.2 4,128 3,687 3,708.8
Slide 16: Occupancy rate increased
Occupancy rate increased Financial occupancy rate, % Tenant turnover, % excluding internal turnover 98.5 98.1 97.6 97.4 96.7 97.0 28.6 28.8 27.6 23.7 21.2 21.6 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Financial occupancy rate = (Rental income / potential rental income at full occu
Slide 17: Equity ratio improved
Equity ratio improved Equity ratio, % Loan to Value (LTV), % 43.0 41.3 41.1 40.7 41.3 40.0 48.6 46.8 47.1 46.0 45.9 39.8 2013 2014* 2015 2016 2017 2018 2013 2014* 2015 2016 2017 2018 *As of 2014, the Group adopted IFRS for its financial reporting. The share issue improved the equity ratio by 1.6 per
Slide 18: EPRA NAV per share improved
EPRA NAV per share improved Equity per share, € 1) EPRA NAV per share, € 1) +5.2% 11.69 +7.4% 11.11 10.31 9.54 8.88 8.10 7.58 6.75 6.88 2013 2014* 2015 2016 2017 2018 2016 2017 2018 *As of 2014, the Group adopted IFRS for its financial reporting. 1) Key figures have been adjusted to reflect the impa
Slide 19: Versatile capital structure
Versatile capital structure The Group’s loan distribution 31 Dec 2018 Distribution of the Group’s loan maturities 31 Dec 2018, average maturity of 5.5 years, M€ Loan portfolio EUR 2,486 million 611 644 5% 2% 0% 295 252 Bonds 1,300 M€ 170 87 115 93 128 62 28 Loans from financial institutions 2019 202
Slide 20: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc's Financial Statements Release 2018 20
Slide 21: We are progressing toward our strategic targets
We are progressing toward our strategic targets Strategic key figures 31 Dec 2018 Target, Dec 2021 Fair value of investment properties EUR 5.1 billion EUR 6.0 billion Number of apartments 34,713 Approximately 38,000 Equity ratio, % 43.0 > 40 Loan to Value (LTV), % 45.9 < 50 FFO as a percentage of to
Slide 22: Key actions in 2018 to achieve the strategic targets
Key actions in 2018 to achieve the strategic targets Strategic key Strategic key Action Action figure figure • We acquired investment properties worth EUR 338.9 million and divested worth Fair value of FFO as a EUR 109.6 million and made • In addition to growth, we were able to investment percentage
Slide 23: Outlook for Kojamo in 2019
Outlook for Kojamo in 2019 • Kojamo estimates that in 2019, the Group’s total revenue will increase by 2–7 per cent year-on-year. In addition, the company estimates that the Group’s FFO for 2019 will amount to between EUR 126–141 million, excluding one-off items. Investments in new development and h
Slide 24: Dividend policy and dividend proposal by the Board of Directors
Dividend policy and dividend proposal by the Board of Directors • Kojamo plc’s distributable unrestricted equity at 31 December 2018 amounted to EUR 396,982,112.49, of which the profit for the financial year amounted to EUR Kojamo’s objective is to be a stable 114,878,205.40. No significant changes
Slide 25: Appendix
Appendix Kojamo plc's Financial Statements Release 2018 25
Slide 26: Kojamo evolution: From VVO Group to Kojamo
Kojamo evolution: From VVO Group to Kojamo Modern residential portfolio with focus on Lumo apartments 2021 Target ~ €6bn € 5.1 bn €4.9bn €€4.7bn 4.7 bn €€4.3bn 4.3 bn € 4.0 bn €4.0bn Name changed to Kojamo Kojamo received VVO Lumo Baa2 rating from Kojamo issued converted to Lumo webstore was the fir
Slide 27: Kojamo plc's strategy
Kojamo plc’s strategy Megatrends Mission Values We create better urban housing. Urbanisation & internationalisation Happy to serve Vision 2021 Ageing population & smaller family sizes We are the property market frontrunner and the number one choice for our customers. New technologies & digitalisatio
Slide 28: Customer experience at the center
Customer experience at the center • We focus on creating excellent customer experience, which comes from versatile living solutions, easy contacting and fluent digital services. Our homes are located close to good transport connections and services • We develope new living services and solutions tog
Slide 29: Responsibility is part of our operations
Responsibility is part of our operations • Kojamo is committed to developing new and modern construction solutions, housing services and ecological innovations related to energy-efficient housing solutions. All of Kojamo’s new construction projects utilising own plot reserves will be nearly zero-ene
Slide 30: Kojamo's ten largest shareholders (31 Dec 2018)
Kojamo’s ten largest shareholders (31 Dec 2018) Shareholder Number of % of shares shares 1. Ilmarinen Mutual Pension Insurance Company 32,359,243 13.1 The number of shareholders on 31 2. Varma Mutual Pension Insurance Company 30,398,089 12.3 December 2018 was over 3,100. 3. The Finnish Industrial Un
Slide 31: Key figures
Key figures 10–12/2018 10–12/2017 Change,% 2018 2017 Change, % Total revenue, M€ 91.2 85.7 6.4 358.8 337.0 6.5 Net rental income, M€ 60.0 56.3 6.6 234.0 216.0 8.3 Net rental income margin of total revenue, % 65.8 65.7 65.2 64.1 Profit before taxes, M€ 77.7 61.3 26.8 277.3 266.7 4.0 Gross investments
Slide 32: Consolidated income statement
Consolidated income statement M€ 10–12/2018 10–12/2017 2018 2017 Total revenue 91.2 85.7 358.8 337.0 Maintenance expenses -21.9 -21.2 -89.5 -85.4 Repair expenses -9.3 -8.2 -35.4 -35.6 Net rental income 60.0 56.3 234.0 216.0 Administrative expenses -10.3 -10.5 -38.6 -37.2 Other operating income and e
Slide 33: Balance sheet
Balance sheet Group Group M€ 31 Dec 2018 31 Dec 2017 ASSETS Non-current assets Intangible assets 0.2 0.4 Investment properties 5,093.2 4,706.5 Property, plant and equipment 30.5 31.0 Investments in associated companies 2.2 1.7 Financial assets 0.6 0.5 Non-current receivables 5.3 5.3 Derivatives 1.5
Slide 34: Balance sheet
Balance sheet Group Group M€ 31 Dec 2018 31 Dec 2017 EQUITY AND LIABILITIES Equity attributable to owners of the parent company Share capital 58.0 58.0 Share issue premium 35.8 35.8 Fair value reserve -23.9 -23.7 Invested non-restricted equity reserve 164.4 17.9 Retained earnings 2,123.7 1,950.6 Equ
Slide 35: Segment information
Segment information Lumo Lumo VVO VVO Group Group 2018 2017 2018 2017 2018 2017 Total revenue, M€ 347.6 307.2 11.5 30.4 358.8 337.0 Net rental income, M€ 227.5 201.2 6.7 15.4 234.0 216.0 Balance sheet, M€ 5,435.7 4,835.5 67.9 211.6 5,485.4 4,943.5 Equity, M€ 2,336.3 1,990.3 22.2 48.3 2,358.1 2,038.6
Slide 36: Financial key figures
Financial key figures 31 Dec 2018 30 Sep 2018 30 Jun 2018 31 Mar 2018 31 Dec 2017 Equity ratio, % 43.0 42.2 41.6 37.4 41.3 Interest cover 4.3 4.3 4.2 4.2 4.2 Loan to Value (LTV), % 45.9 46.2 46.7 49.2 46.0 Hedging ratio, % 94 94 92 87 111 Average interest rate, %1) 1.8 1.8 1.8 1.8 2.0 Average loan m
Slide 37: Thank you!
Thank you! Contact details: CEO Jani Nieminen, tel. +358 20 508 3201 CFO Erik Hjelt, tel. +358 20 508 3225 Manager, Investor Relations Maija Hongas, tel. +358 20 508 3004 www.kojamo.fi Kojamo plc's Financial Statements Release 2018 37