Slide 1: Half-Year Financial Report 1–6/2021
19 August 2021 Half-Year Financial Report 1–6/2021 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January–June 2021 • Financial development • Outlook, financial targets and dividend policy Kojamo plc's Half-Year Financial Report January–June 2021 2
Slide 3: Summary of January–June 2021
Summary of January–June 2021 Kojamo plc's Half-Year Financial Report January–June 2021 3
Slide 4: Operating environment
Operating environment General operating environment Industry key figures 2021E 2020 Residential start-ups, units 37,000 40,900 • The easing of the pandemic is expected to broadly accelerate Finland’s economic growth. Finnish exports are expected to of which non-subsidised block-of-flats 17,300 21,70
Slide 5: Operating environment
Operating environment Population growth forecast 2020–2040 Pandemic does not have a long-term impact on Helsinki 18.8% the rental market Capital region* 21.1% • The pandemic has had a temporary impact on occupancy rates Jyväskylä 4.2% • Urbanisation, decreasing average household size and demand Kuop
Slide 6: Operating environment
Operating environment Completed apartments and population Housing production need 2020–2040 growth in the capital region in 2000–2020 apartments population 22% Helsinki 20,000 30,000 Tampere 15,000 Oulu 20,000 3% ~35,000 43% Turku 10,000 3% apartments / Jyväskylä 10,000 year 5,000 4% Kuopio 8% Lahti
Slide 7: Key figures 1–6/2021
Key figures 1–6/2021 total revenue net rental income funds from operations (FFO) 194.0 M€ 124.5 M€ 69.0 M€ (190.5 M€, +1.8%) (124.9 M€, -0.3%) (71.5 M€, -3.4%) fair value of investment profit excluding properties gross investments changes in value 1) profit before taxes 7.5 Bn€ 176.5 M€ 80.5 M€ 546.
Slide 8: 2,793 apartments under construction
2,793 apartments under construction • During the review period, 0 (18) apartments were sold, 0 (45) acquired and 441 (201) completed • During the period, construction of 610 (1,265) apartments was started Development of apartment portfolio, units Apartments under construction, units +1.9% +17.4% 35,
Slide 9: Strong project pipeline
Strong project pipeline • Almost 2,800 apartments under construction, all in the Kojamo’s projects on map Helsinki region • Co-operation agreements on the construction of over 800 apartments • Metropolia property development project to bring even 1,000 apartments, as six former educational propertie
Slide 10: Metropolia properties
Metropolia properties E Six former educational building assets to be converted in rental apartments F Metropolia development project assets Metro Railway D B Asset Anticipated approval of rezoning A. Abrahaminkatu 1 Completed (construction estimated Chemistry faculties to start in 2021) Completed (c
Slide 11: We want to be the property market frontrunner and the number one choice for our customers
We want to be the property market frontrunner and the number one choice for our customers Distribution of Lumo customers Services of a new customer Services during tenancy Distribution by household type Pets are welcome Lumo real estate management and 1 person 15% customer service Broadband included
Slide 12: Financial development
Financial development Kojamo plc's Half-Year Financial Report January–June 2021 12
Slide 13: Total revenue increased
Total revenue increased • The growth of property portfolio and rental growth had a positive impact and the decrease of financial occupancy rate had a negative impact on the total revenue • The decrease in net rental income was mainly due to higher property maintenance costs Total revenue, M€ Net ren
Slide 14: Profit before taxes increased
Profit before taxes increased • Profit before taxes increased mainly due to changes in value • Lower net rental income and higher interest expenses due to increased amount of interest-bearing debt than in the comparison period had an impact on FFO Funds From Operations (FFO), M€ Profit before taxes,
Slide 15: The COVID-19 pandemic had a substantial effect on the financial occupancy rate
The COVID-19 pandemic had a substantial effect on the financial occupancy rate • The COVID-19 pandemic has temporarily had an impact on the amount of supply as well as migration • Rent receivables to total revenue on a low level of 1.3% (1.3%) Financial occupancy rate, % Tenant turnover, % excluding
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 30 June 2021 +2.1% COVID-19 pandemic had a negative impact on the occupancy rate, which is why Like-for-Like growth was moderate as anticipated -1.7
Slide 17: Investments proceeding according to strategy
Investments proceeding according to strategy • Repairs on the previous year’s level, the decrease in modernisation investments was related to the timing of projects Gross investments and sales of Modernisation investments and investment properties, M€ repairs, M€ Gross investments Sales of investmen
Slide 18: The value of investments properties was EUR 7.5 billion
The value of investments properties was EUR 7.5 billion • The fair value has developed positively during the review period • Yield compression increased the fair value Fair value of investment properties, M€ 1) Number of apartments by valuation (at the end of the review period) classes (at the end o
Slide 19: Plot and real estate development reserve 30 June 2021
Plot and real estate development reserve 30 June 2021 Owned To be completed in Q3/2021 plots and development projects1 Lapinmäentie 10, Forsmestarinpiha 2, Helsinki Espoo Apartments Binding Metropolia under preliminary development construction agreements project Others In total Investment / actual c
Slide 20: Equity ratio and Loan to Value (LTV)
Equity ratio and Loan to Value (LTV) • Equity ratio and Loan to Value (LTV) in line with the strategic targets Equity ratio, % Loan to Value, (LTV), % 46.0 45.9 46.9 41.4 42.6 41.0 45.6 45.8 40.5 43.0 43.3 41.3 2017 2018 2019 2020 30 Jun 30 Jun 2017 2018 2019 2020 30 Jun 30 Jun 2020 2021 2020 2021 T
Slide 21: Key figures per share improved significantly
Key figures per share improved significantly • Fair value growth of the investment properties had a positive impact on key figures per share Equity per share, € 1) EPRA NRV per share, € 1) +18.1% +18.4% 19.07 14.84 17.21 16.00 16.15 13.39 12.51 12.53 11.52 12.10 9.54 8.88 2017 2018 2019 2020 30 Jun
Slide 22: Versatile capital structure
Versatile capital structure The Group’s loan distribution Financing key figures 30 June 2021 % years 3 Average interest rate fixing period, years 6 Loan portfolio EUR 3,300 million 4.7 5 2.5 4.6 4 Bonds Average loan maturity, years EUR 2,035 million 3 1% 1%0% 2 Average interest rate, % 2 Loans from
Slide 23: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Key figure Target 1–6/2021 2020 Annual growth of total revenue, % 1.8 2.3 4–5 Annual investments, M€ 176.5 371.2 200–400 FFO/total revenue, % 35.6 39.5 > 36 Loan to Value (LTV), % 41.0 41.4 < 50 Equity ratio, % 45.8 45.6 > 40 Net Promoter Score (NPS) 22 36 4
Slide 24: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc's Half-Year Financial Report January–June 2021 24
Slide 25: Outlook for Kojamo in 2021 (specified)
Outlook for Kojamo in 2021 (specified) Kojamo estimates that in 2021, the Group’s total revenue will increase by 2–4 per cent (previously 3–5 per cent) year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2021 will amount to between EUR 150–158 million, excluding non-recurring costs
Slide 26: Dividend policy
Dividend policy Dividend history Kojamo’s objective is to be a 62% 60% 60% stable dividend payer whose 0.51 annual dividend payment will be 0.37 0.34 0.29 0.29 at least 60 per cent of FFO, 0.22 0.16 provided that the Group’s equity 0.22 ratio is 40 per cent or more and 2015 2016* 2017 2018 2019 2020
Slide 27: Summary
Summary Yield compression Our project portfolio is We expect the impact of supported the fair value of strong and will support us COVID-19 pandemic on our investment properties in creating future growth the operating environment which exceeded EUR 7.5 to be temporary and that billion during the revi
Slide 28: Thank you!
Interim report for January–September 2021 Thank you! to be published on 4 November 2021 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 Half-Year Financial Repor
Slide 29: Appendix
Appendix Kojamo plc's Half-Year Financial Report January–June 2021 29
Slide 30: Kojamo’s apartment portfolio
Kojamo’s apartment portfolio Apartment distribution, % Number of 4.0% 5.1% commercial 4.6% Number Fair Fair value Fair Helsinki premises Financial Share of 4.9% of apart- value, (EUR value region Region and other occupancy revenue, 6.1% ments, (EUR thousand (EUR / leased rate, %3) % Tampere units mi
Slide 31: 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 32: 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 33: Our Digital Roadmap will guide us from today to year 2023 according to our strategy
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 62 Digital services Digitalisation of properties and services 71% My Lumo user coverage Knowledge-based management and AI Enabl
Slide 34: 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 35: Key sustainability figures 2020
Key sustainability figures 2020 Energy efficiency Carbon footprint 34.5 8.9 5.5 1.4 kWh/m3 (40.4) MWh/apartment kg CO2e/m3 (6.9) t CO2e/apartment 20.6% 84% 100% 37% share of renewable energy of completed apartments since of apartments under waste recycling rate (35) of energy consumption 2016 with a
Slide 36: 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 70/100 assessment properties by 2030 We commit to We apply EPRA’s Sustaina
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 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 38: Kojamo’s ten largest shareholders (as at 30 June 2021)
Kojamo’s ten largest shareholders (as at 30 June 2021) Number of Development of the number Shareholder shares % of shares Nominee-registered and direct foreign of the shareholders 12,960 12,803 109,136,266 44.2 shareholders 1. The Finnish Industrial Union 23,809,561 9.6 2. Ilmarinen Mutual Pension I
Slide 39: Key figures
Key figures 4–6/2021 4–6/2020 Change, % 1–6/2021 1–6/2020 Change, % 2020 Total revenue, M€ 96.7 94.8 2.0 194.0 190.5 1.8 383.9 Net rental income, M€ 69.1 68.9 0.2 124.5 124.9 -0.3 257.6 Net rental income margin, % 71.4 72.7 64.2 65.6 67.1 Profit before taxes, M€ 369.6 73.5 402.9 546.7 125.2 336.5 39
Slide 40: Consolidated income statement
Consolidated income statement M€ 4–6/2021 4–6/2020 1–6/2021 1–6/2020 2020 Total revenue 96.7 94.8 194.0 190.5 383.9 Maintenance expenses -18.6 -17.1 -54.0 -50.2 -90.5 Repair expenses -9.1 -8.8 -15.4 -15.4 -35.8 Net rental income 69.1 68.9 124.5 124.9 257.6 Administrative expenses -9.9 -9.9 -19.2 -20
Slide 41: Balance sheet
Balance sheet M€ 30 June 2021 30 June 2020 31 Dec 2020 ASSETS Non-current assets Intangible assets 0.5 0.1 0.4 Investment properties 7,506.1 6,484.0 6,860.7 Property, plant and equipment 29.2 30.6 29.8 Investments in associated companies 1.1 2.4 1.1 Financial assets 0.7 0.7 0.7 Non-current receivabl
Slide 42: Balance sheet
Balance sheet M€ 30 June 2021 30 June 2020 31 Dec 2020 EQUITY AND LIABILITIES Equity attributable to shareholders of the parent company Share capital 58.0 58.0 58.0 Share issue premium 35.8 35.8 35.8 Fair value reserve -41.0 -54.8 -54.2 Invested non-restricted equity reserve 164.4 164.4 164.4 Retain
Slide 43: Financial key figures
Financial key figures 30 Jun 2021 31 Mar 2021 31 Dec 2020 30 Sep 2020 30 Jun 2020 Equity ratio, % 45.8 45.5 45.6 44.1 43.3 Interest cover 4.0 4.1 4.2 4.2 4.3 Loan to Value (LTV), % 41.0 40.2 41.4 42.1 42.6 Hedging ratio, % 92 90 91 89 87 Average interest rate, %1) 1.8 1.9 1.8 1.8 1.7 Average loan ma
Slide 44: 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