Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — H1 2017 Earnings Presentation
28 slides from Lumo Homes's earnings presentation, June 2017
Slide 1: Half Year Financial Report 1 January–30 June 2017
Half Year Financial Report 1 January–30 June 2017 Kojamo plc
Slide 2: Table of contents
Table of contents 1. We create better urban housing 2. Key figures for the review period 3. Operating environment 4. Business operations and strategy progress 5. Outlook Kojamo plc’s Half Year Financial Report 1 January–30 June 2017 2
Slide 3: We create better urban housing
We create better urban housing We diversified our financing to ensure the achievement of our strategic goals. • Our public credit rating and the Eurobond listed on the Irish Stock Exchange support the company’s goal of investing in Lumo homes in the urbanising Finland. • Our objective is to increase
Slide 4: Key figures for the review period
Key figures for the review period • Gross investments amounted to EUR 129.4 million. • Turnover totalled EUR 167.2 million. • Net rental income was EUR 106.0 million. • The financial occupancy rate was 96.6 per cent. • The Group had a total of 33,877 rental apartments and approximately 4% market sha
Slide 5: Operating environment
Operating environment Urbanisation has continued strongly, which could be seen in the growing number of apartment buildings being built in growth centres. New construction clearly focused on privately financed rental apartments. Urbanisation is expected to maintain demand in growth centres, while th
Slide 6: Business operations and strategy progress
Business operations and strategy progress Kojamo plc’s Half Year Financial Report 1 January–30 June 2017 6
Slide 7: Turnover and profit before taxes developed steadily
Turnover and profit before taxes developed steadily Turnover, EUR million Profit before taxes, EUR million 350 400 Change in the fair value of investment properties Other items 370.9 346.6 356.5 351.5 300 289.7 350 126.4 300 250 224.7 250 154.4 200 200 182.3 167.2 146.5 150 163.3 136.8 150 120.3 105
Slide 8: Investments in Lumo business operations continued
Investments in Lumo business operations continued Gross investments and sales of investment properties, EUR million Renovations, EUR million Gross investments Sales of investment properties Modernisation investments Renovations and repairs 800 100 696.0 92.3 90 83.8 600 78.6 80 400 68.4 223.2 235.0
Slide 9: The value of investment properties developed in line with strategy
The value of investment properties developed in line with strategy Fair value, EUR million 5,000 4,423.0 4,500 4,298.9 3,999.2 4,000 EUR million Q2/2017 Q4/2016 Change 3,708.8 3,607.8 3,500 3,351.1 Investment properties 4,419.1 4,228.3 190.8 3,000 Investment property held for sale 3.9 70.6 -66.7 2,5
Slide 10: The focus of our operations is on the seven main urban regions of Finland
The focus of our operations is on the seven main urban regions of Finland Apartments, % Fair value, % Helsinki Area 54.8% Helsinki Area 65.2% Tampere Area 14.0% Tampere Area 11.8% Turku Area 5.4% Turku Area 4.5% Oulu 6.2% Oulu 4.1% Kuopio Area 5.0% Kuopio Area 4.0% Lahti Area 4.4% Lahti Area 3.6% Jy
Slide 11: The financial occupancy rate remained high
The financial occupancy rate remained high Financial occupancy rate, % Tenant turnover% Internal turnover% 31.0 27.6 27.2 25.4 25.8 98.5 98.1 97.6 97.4 96.9 96.6 23.7 21.2 21.6 17,7 15.6 15.5 13.7 4.2 4.2 3.5 3.4 2.2 1.9 2013 2014 2015 2016 Q2/2016 Q2/2017 2013 2014 2015 2016 Q2/2016 Q2/2017 Kojamo
Slide 12: Equity ratio remained strong
Equity ratio remained strong Equity per share, EUR Equity ratio, % 300 45 43.6 41.3 41.1 260.82 40.0 40.7 251.20 40 38.8 250 234.85 238.10 213.30 35 209.16 200 30 25 150 20 100 15 10 50 5 0 0 2013 2014* 2015 2016 Q2/2016 Q2/2017 2013 2014* 2015 2016 Q2/2016 Q2/2017 *As of 2014, the Group adopted IFR
Slide 13: We diversified our financing sources and maintained a balanced distribution of maturities
We diversified our financing sources and maintained a balanced distribution of maturities The Group’s loan distribution Distribution of loan maturities Loan portfolio structure, EUR 2,460 million EUR million 700 Interest-subsidised loans 612 0%2% EUR 288 million 12 % 600 0% Annual payment loans EUR
Slide 14: Moderate LTV and strong key indicators
Moderate LTV and strong key indicators Average interest rate, maturity and interest LTV (Loan to Value), % rate fixing period of the Group’s loans Group 60 Average interest rate, % Average loan period Average interest rate fixing period 48.6 50 46.8 47.1 46.6 % Years 39.8 3.0 7 38.9 40 2.8 6 30 5 2.
Slide 15: Strategic key indicators
Strategic key indicators Key indicator Actual result Q2/2017 Goal 2021 EUR 4.4 billion EUR 6.0 billion Apartment assets 33,877 apartments 38,000 apartments Operative result of the Lumo business as a percentage of turnover 31.7 32.0 Equity ratio of the Lumo business, % 38.7 40.0 Net promoter score 31
Slide 16: Outlook
Outlook Market outlook Outlook for Kojamo Group in 2017 • The growth forecasts for the Finnish economy have been • Net rental income is estimated to amount to EUR 208–220 revised upwards to well above two per cent (Ministry of million. Finance 6/2017: 2.4%). Growth expectations are based on househol
Slide 17: Appendices
Appendices Kojamo plc’s Half Year Financial Report 1 January–30 June 2017 17
Slide 18: Basic information of the company
Basic information of the company Kojamo plc offers rental apartments and housing services in Finnish growth centres. Its mission is: We create better urban housing. The vision of the housing investment company is to be a pioneer in housing and the customer’s number-one choice. The fair value of Koja
Slide 19: 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 a pioneer in housing and the customer’s number-one choice. New technologies & digitalisation Strive for succe
Slide 20: The focus of our operations is on the seven main urban regions of Finland
The focus of our operations is on the seven main urban regions of Finland Distribution of apartments Helsinki Area Tampere Area 18,551 4,749 Average area Turku Area Oulu Apartments of apartments 1,827 2,114 33,877 55.8 m2 Kuopio Area Lahti Area Properties Residents numbering nearly 1,697 1,505 1,364
Slide 21: EUR 100 million in paid taxes in Finland
EUR 100 million in paid taxes in Finland The Group’s tax footprint in 2016 5% Income taxes 4% Property taxes Transfer taxes 36 % Employer payments 23 % VAT non-deductible included in investments VAT non-deductible included in other procurements VAT remitted Withholding tax for salaries 9% Indirect e
Slide 22: Responsibility is part of our operations
Responsibility is part of our operations • The anti-grey economy models exceed legislative requirements. • Kojamo Group’s estimated taxes and tax-like charges in 2017 amount to approximately EUR 100 million. • Kojamo Group will continue its climate partnership agreement with the City of Helsinki. •
Slide 23: Consolidated income statement
Consolidated income statement EUR million 1–6/2017 1–6/2016 1–12/2016 Turnover 167.2 182.3 351.5 Property maintenance costs -43.6 -48.6 -90.3 Renovation and repairs -17.6 -17.2 -39.1 Net rental income 106.0 116.5 222.0 Administrative costs -18.0 -17.4 -37.4 Other operating income and costs -0.1 -1.4
Slide 24: Balance sheet
Balance sheet Group Group Group EUR million 30 June 2017 30 June 2016 31 December 2016 ASSETS Non-current assets Intangible assets 0.5 0.9 0.8 Investment properties 4,419.1 3,607.8 4,228.3 Property, plant and equipment 31.1 31.3 31.0 Share in associated companies 1.2 1.0 1.2 Financial assets 0.5 0.6
Slide 25: Balance sheet
Balance sheet Group Group Group EUR million 31 December 2017 30 June 2016 31 December 2016 SHAREHOLDERS’ EQUITY AND LIABILITIES Equity attributable to shareholders of the parent company Share capital 58.0 58.0 58.0 Share premium 35.8 35.8 35.8 Fair value reserve -27.7 -56.8 -40.2 Reserve for investe
Slide 26: Business operations
Business operations Lumo Lumo VVO VVO Group Group 1–6/2017 1–6/2016 1–6/2017 1–6/2016 1–6/2017 1–6/2016 Turnover, EUR million 152.3 138.4 15.2 44.6 167.2 182.3 Operating profit, EUR million 149.4 134.1 6.7 -8.3 156.4 126.6 Profit before taxes, EUR million 131.4 117.6 5.4 -13.0 109.0 105.3 Balance sh
Slide 27: Financial key figures
Financial key figures Group 30 June 2017 31 Mar. 2017 31 Dec. 2016 30 Sep. 2016 30 June 2016 Equity ratio, % 38.8* 40.6 40.7 39.5 43.6 Interest cover 4.2 4.5 4.8 5.0 5.1 Hedging ratio, % 83.0 79.0 77.0 71.0 74.0 Average interest rate, % 1.9 2.1 2.0 2.1 2.1 Average loan period, years 5.7 5.8 5.7 5.5
Slide 28: Thank you!
Thank you! Contact details: CEO Jani Nieminen tel. +358 20 508 3201 CFO Erik Hjelt, tel. +358 20 508 3225 Kojamo plc’s Half Year Financial Report 1 January–30 June 2017 28