Slide 1: Financial Statements Release 2022
15 February 2023 Financial Statements Release 2022 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January– December 2022 • Financial development • Outlook, financial targets and dividend policy Kojamo plc`s Financial Statements Release 2022 2
Slide 3: Summary of January–December 2022
Summary of January– December 2022 Kojamo plc`s Financial Statements Release 2022 3
Slide 4: Strong operative result in a challenging year
Strong operative result in a challenging year • Profitable growth continued • Positive turn in the occupancy rate after the summer • The fair value of investment properties decreased at the year end due to higher yield requirements in the market • Balance sheet has remained strong • Good liquidity s
Slide 5: Operating environment
Operating environment General operating environment Industry key figures 2023E 2022E • The outlook for the global economy is bleak as the Residential start-ups, units 36,000 40,800 Russian invasion of Ukraine and Europe’s energy crisis of which non-subsidised block-of-flats 16,600 22,200 continue Bu
Slide 6: Operating environment
Operating environment The situation in the rental market has improved Population growth forecast 2021–2040, % • Urbanisation, decreasing average household size and Helsinki 19.9 demand focusing on central locations support the demand for Capital region* 21.7 rental apartments in the long term Jyväsk
Slide 7: Operating environment
Operating environment Completed apartments and population Housing production need 2020–2040, % growth in the capital region in 2000–2021 Helsinki apartments population 20,000 30,000 Tampere 22 15,000 Oulu 20,000 ~35,000 43 Turku 3 apartments / 10,000 3 Jyväskylä year 10,000 4 5,000 Kuopio 8 6 Lahti
Slide 8: Key figures 1–12/2022
Key figures 1–12/2022 total revenue net rental income funds from operations (FFO) 413.3 M€ 280.1 M€ 160.7 M€ (391.7 M€, +5.5%) (262.3 M€, +6.8%) (153.1 M€, +5.0%) fair value of investment profit excluding changes in properties gross investments value 1) profit/loss before taxes 8.2 Bn€ 501.6 M€ 182.
Slide 9: 1,804 apartments under construction
1,804 apartments under construction • During the review period, 985 (0) apartments were acquired, 0 (0) sold and 1,348 (1,282) completed • During the period, construction of 477 (1,333) apartments was started Development of apartment portfolio, units Apartments under construction, units +6.3% -32.6%
Slide 10: Strong project pipeline
Strong project pipeline Kojamo’s projects on map • 1,804 apartments under construction in the Helsinki region, Tampere and Turku • Preliminary agreements for new construction of about 100 apartments Estimate of completions, units*** 1,410 1,348 386 452 394 250 322 119 Q1 Q2 Q3 Q4 2022** 2023 2024 20
Slide 11: Completed apartments Q4/2022
Completed apartments Q4/2022 248 completed apartments in total As Oy Vantaan Ruukkupolku 14 As Oy Vantaan Pyhtäänkorventie 15f As Oy Helsingin Tenderinlenkki 6 Tower block with 15 floors Apartment house with 6 floors Apartment house with 12 floors Located in Vantaa Located in Vantaa Located in Helsi
Slide 12: Lumo – Easily best living
Lumo – Easily best living Lumo is urban life at its best. Lumo rental homes offer safe, convenient and environmentally friendly housing paired Services of a new customer Services during tenancy with the best housing services. Lumo homes are located in the best areas of Pets are welcome Lumo real est
Slide 13: Financial development
Financial development Kojamo plc`s Financial Statements Release 2022 13
Slide 14: Total revenue and net rental income increased
Total revenue and net rental income increased • The growth of property portfolio and rental growth had a positive impact and the decrease of financial occupancy rate in the beginning of the year had a negative impact on the total revenue • Net rental income increased due to higher total revenue and
Slide 15: Positive development with profit before taxes and FFO
Positive development with profit before taxes and FFO • Profit before taxes and excluding fair value changes of investment properties increased • The FFO growth was attributable to the improvement in net rental income Profit before taxes, M€ Funds From Operations (FFO), M€ and € / share Profit exclu
Slide 16: Financial occupancy rate turned to growth in the second half of the year
Financial occupancy rate turned to growth in the second half of the year • Financial occupancy rate at the end of September was 91.7% (cumulative) and 92.0% at the year end (cumulative) • COVID-19 pandemic affected the financial occupancy rate in the beginning of the year • Tenant turnover decreased
Slide 17: 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 2022 COVID-19 pandemic had a +2.2% negative impact on the occupancy rate, due to which Like-for-Like rental income was slightly positive
Slide 18: Investments have proceeded according to plans
Investments have proceeded according to plans • For the time being, we will not make new investment decisions due to the uncertainty in the market • Ongoing projects will be completed as agreed Gross investments and sales of Modernisation investments and investment properties, M€ repairs, M€ Gross i
Slide 19: The value of investment properties was EUR 8.2 billion
The value of investment properties was EUR 8.2 billion • The fair value decreased due to higher yield requirements in the market Fair value of investment properties, M€ * Number of apartments by valuation classes -2.1% Yield value (new technique) Transaction value Yield value (old technique) Acquisi
Slide 20: Plot and real estate development reserve December 2022
Plot and real estate development reserve 31 December 2022 To be completed in Q1/2023 Owned plots and development Liikkalankuja 4, projects 1 Helsinki Apartments Metropolia under development Construction* project Others In total Investment / actual costs incurred, M€ 293.6 72.8 80.0 446.3 Haltiantie
Slide 21: 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 • Significant buffer to the upper limit of Baa2 rating Equity ratio, % Loan to Value (LTV), % 45.9 43.7 49.0 40.5 41.4 46.9 45.6 45.3 37.7 43.0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2
Slide 22: Key figures per share
Key figures per share • Fair value decrease of the investment properties had a negative impact on key figures per share Equity per share, € 1) EPRA NRV per share, € 1) -9.9% -11.4% 22.04 19.53 17.25 17.21 15.55 16.00 13.39 12.51 12.10 9.54 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 1) Key fig
Slide 23: Rising interest rates didn’t significantly increase our financial costs
Rising interest rates didn’t significantly increase our financial costs due to high hedging ratio The Group’s liquidy, M€ Financing key figures % years 3.0 5 4 2.5 3.5 119 3 3.2 Cash and cash equivalents 119 M€ 2 2.0 1.9 1 Financial assets 104 M€ 300 1.5 0 104 Unused committed credit facilities 300
Slide 24: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Actual Key figure Target 2022 2021 2020 Annual growth of total revenue, % 5.5 2.0 2.3 4–5 Annual investments, M€ 501.6 356.9 371.2 200–400 FFO/total revenue, % 38.9 39.1 39.5 > 36 Loan to Value (LTV), % 43.7 37.7 41.4 < 50 Equity ratio, % 45.3 49.0 45.6 > 40
Slide 25: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc`s Financial Statements Release 2022 25
Slide 26: Outlook for Kojamo in 2023
Outlook for Kojamo in 2023 Kojamo estimates that in 2023, the Groupʼs total revenue will increase by 7–10 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2023 will amount to between EUR 153–165 million, excluding non-recurring costs. The outlook is based on the manageme
Slide 27: Dividend policy
Dividend policy Dividend proposal by the Board of Directors The Board of Directors proposes to the Annual General Meeting that the Dividend history distributable funds to be used as follows: a dividend of EUR 0.39 per share to be paid, totalling EUR 96,386,315.61 and 62% 60% 60% 61% 60% EUR 154,673,
Slide 28: Summary
Summary Profitable growth The value of investment For the time being we continued: total revenue properties decreased due will not make new and net rental income as to the higher yield investment decisions, well as FFO increased requirements in the market but ongoing projects continue according Our
Slide 29: Thank you!
Interim Report January-March 2023 to be published on Thank you! 11 May 2023 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 Rele
Slide 30: Appendix
Appendix Kojamo plc`s Financial Statements Release 2022 30
Slide 31: Kojamoʼs apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of commercial Fair 3.7 4.7 Helsinki region Number Fair Fair 4.3 premises value, Financial Share of of apart- value, value, 5.3 Region and other (EUR occupancy revenue, ments, (EUR (EUR / leased thousand rate, %3) % Tampere region units mi
Slide 32: Our strategy 2020–2023
Our strategy 2020–2023 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 p
Slide 33: Strategic focal points 2020–2023
Strategic focal points 2020–2023 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 add
Slide 34: Our Digital Roadmap will guide us from today to year 2023
Our Digital Roadmap will guide us from today to year 2023 according to our strategy Customer experience and servitisation Scalability of operations, employee experience NPS 60 Digital services Digitalisation of properties and services 83% My Lumo user coverage Knowledge-based management and AI Enabl
Slide 35: Sustainability programme guides our sustainability work from 2021 onwards
Sustainability programme guides our sustainability work from 2021 onwards STRATEGIC FOCAL POINT 2020–2023: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT We create better urban housing Ensuring long-term profitability and Sustainable and responsible operations Transparent communications and business gro
Slide 36: Our sustainability work is proceeding
Our sustainability work is proceeding • As a part of our action plan aimed at zero emissions for our We commit to complying with the properties by 2030, we started the conversion of seven UN Sustainable Development properties to geothermal heating, and we optimize energy Goals consumption by utilisi
Slide 37: Key sustainability figures 2022
Key sustainability figures 2022 Total energy consumption Carbon footprint 35.3 8.9 3.9 1.0 kWh/m3 (37.7) MWh/apartment (9.8) kg CO2e/m3 (4.4) t CO2e/apartment (1.1) Share of renewable Apartments completed Apartments under Waste recycling rate energy of energy since 2016 with an E-value construction
Slide 38: 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 commit to complying with the UN Sustainable Development Goals and to use carbon-neutral energy in our properties by 2030 dynamic place to work Anti-grey economy 10
Slide 39: Sustainability commitments and reporting
Sustainability commitments and reporting Our sustainability Our sustainability reporting and Our commitments recognitions memberships We aim to use carbon- We participated the global neutral energy in our GRESB sustainability 72/100 assessment properties by 2030 We apply EPRA’s Sustainability We com
Slide 40: Lumo One skyscraper was completed in September
Lumo One skyscraper was completed in September Lumo One is the tallest rental apartment building in Finland, with 291 apartments on 31 floors. On the 29th floor of the building are glazed view terraces, sauna facilities and a common living room for the residents, which also has remote workstations,
Slide 41: Kojamoʼs ten largest shareholders (as at 31 December 2022)
Kojamoʼs ten largest shareholders (as at 31 December 2022) Number of Development of the number of the shareholders Shareholder shares % of shares Nominee-registered and direct foreign 11,843 11,566 12,128 12,047 132,986,645 53.8 11,448 shareholders Ilmarinen Mutual Pension Insurance 1. 20,537,814 8.
Slide 42: Key figures
Key figures 10–12/2022 10–12/2021 Change, % 2022 2021 Change, % Total revenue, M€ 107.9 99.6 8.3 413.3 391.7 5.5 Net rental income, M€ 72.4 65.5 10.5 280.1 262.3 6.8 Net rental income margin, % 67.1 65.8 67.8 67.0 Profit/loss before taxes, M€ -748.3 662.9 -212.9 -499.8 1,278.9 -139.1 Gross investmen
Slide 43: Consolidated income statement
Consolidated income statement M€ 10–12/2022 10–12/2021 2022 2021 Total revenue 107.9 99.6 413.3 391.7 Maintenance expenses -26.8 -25.2 -103.1 -96.9 Repair expenses -8.6 -8.9 -30.2 -32.4 Net rental income 72.4 65.5 280.1 262.3 Administrative expenses -13.4 -9.9 -43.1 -37.3 Other operating income and
Slide 44: Balance sheet
Balance sheet M€ 31 Dec 2022 31 Dec 2021 ASSETS Non-current assets Intangible assets 0.7 0.8 Investment properties 8,150.2 8,326.4 Property, plant and equipment 28.4 28.8 Investments in associated companies 1.5 1.5 Financial assets 0.7 0.7 Non-current receivables 6.7 6.9 Derivatives 53.8 - Deferred
Slide 45: Balance sheet
Balance sheet M€ 31 Dec 2022 31 Dec 2021 EQUITY AND LIABILITIES Equity attributable to shareholders of the parent company Share capital 58.0 58.0 Share issue premium 35.8 35.8 Fair value reserve 43.0 -31.0 Invested non-restricted equity reserve 164.4 164.4 Retained earnings 3,541.4 4,036.0 Equity at
Slide 46: Financial key figures
Financial key figures 31 Dec 2022 30 Sep 2022 30 Jun 2022 31 Mar 2022 31 Dec 2021 Equity ratio, % 45.3 48.7 47.9 46.9 49.0 Interest cover 3.9 3.9 3.9 4.0 4.0 Loan to Value (LTV), % 43.7 39.9 40.5 37.4 37.7 Hedging ratio, % 84 92 91 93 92 Average interest rate, % ¹⁾ 1.9 1.7 1.7 1.8 1.8 Average loan m
Slide 47: 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