Srv Yhtiot Oyj · OMXHEX:SRV1V
Srv Yhtiot Oyj — SRV Group — Investor Day (June 2016)
33 slides from Srv Yhtiot Oyj's investor day presentation, Jun 1, 2016
Slide 1: Capital Markets Day
Capital Markets Day 1st June 2016 1 Juha Toimela, SVP, Operations in Finland
Slide 2: Content
Content • Market overview - General - Business premises and shopping centres - Housing • Focus in housing development in growth centres • Who buys, where and what? • What do people want from housing in the future? - Case REDI by SRV • Latest Major Projects
Slide 3: Market overview – General
Market overview – General 3
Slide 4: Vision 2020 and long term targets
<—~ ar a ee & w Vr Ny Increase in prosperity & As, and service culture > C Jao Ye, and polarisation of zf/ Changes in consumer 4%, — society 4 behaviour and ways Oy of working VISION 2020 mee w SRV CREATES THE BEST 4 CUSTOMER EXPERIENC| AS A. CONSTRUCTOR-OF “URBAN TOWN ENTRE COURAGE IN DEVELOPMEy, S
Slide 5: Construction market continues with positive signs
Construction market continues with positive signs Growth expected to be 3-4 per cent in 2016 5
Slide 6: Construction volumes are increasing
Construction volumes are increasing High demand especially for small residential apartments in the growth centres 6
Slide 7: Market overview – Business premises and shopping centres
Market overview – Business premises and shopping centres 7
Slide 8: Business premises' market remains flat
Business premises’ market remains flat Urbanisation increases the need for business construction in growth centres in long run 8
Slide 9: Shopping centre visitors and sales increased during the recession
Shopping centre visitors and sales increased during the recession 7000 400 6000 350 300 5000 250 4000 EUR Million Need for new Million 200 big shopping 3000 150 centres in 2000 Helsinki area 100 is real! 1000 50 0 0 2009 2010 2011 2012 2013 2014 2015 Visitors (Million) Sales (EUR Million) 9
Slide 10: Market overview – Housing
Market overview – Housing 10
Slide 11: Migration and urbanisation in Finland
Migration and urbanisation in Finland Net migration of municipalities per mille in 2009-2013 Share of people living in cities in 2013 Belgium Great Britain Netherlands Germany Denmark Sweden Spain France Norway Italy Motorway Finland Railway Switzerland Ireland 0% 20% 40% 60% 80% 100% Source: Techni
Slide 12: House prices are climbing – no ingredients for a bubble as yet
House prices are climbing – no ingredients for a bubble as yet House prices in relation to earnings level Nominal Price Index House prices in Helsinki area predicted to increase more Relation to earnings level than in other parts of Finland Source: Macrobond/Confederation of Finnish Construction Ind
Slide 13: Focus in housing development in growth centres
Focus in housing development in growth centres 13
Slide 14: SRV has a key role as a developer of a rail hub
KEIMOLANMÄKI KIVISTÖ SRV has a keyrole as a AVIAPOLIS TIKKURILA developer of a rail hub VANTAANKOSKI MARTINLAAKSO MYYRMÄKI METRO LINE RING RAIL LINE RAIDE-JOKERI, TRAM LINE SRV´S PROJECTS OULUNKYLÄ SÄTERINPORTTI PERKKAA–VERMONTIE PASILA AALTO UNIVERSITY KALASATAMA CAMPUS BUILDING KEILANIEMI NIITTYKU
Slide 15: High amount of housing startups will improve future result
High amount of housing startups High amount of housing startups will improve in 2015 – visible in future result result and revenue in 2016-17 1000 Developer contracting, housing starts in Finland (units) 900 883 Over two times 802 791 more apartments 800 750 completed in 2016 700 than in 2015 - appr
Slide 16: Who buys, where and what?
ta Who buys, where and what? SRW 16
Slide 17: Rent or buy? A one- or three-room apartment?
Rent or buy? A one- or three-room apartment? The freedom to choose Owner-occupied and make quick changes flat still a clearly is increasingly guiding more common young generation choice More than one The number of small million Finns live apartments still growing – alone! a direct response to market
Slide 18: Many forms of housing investment
Many forms of housing investment Housing investment Several forms of stays attractive investment instruments Other services being created Several parties increasingly extensively involved as housing investors around housing – Cash-flow is king! investment
Slide 19: What do people want from housing? Case REDI by SRV
What do people want from housing? Case REDI by SRV 19
Slide 20: Housing preferences and new values on the rise
Housing preferences and new values on the rise 3 1 2 4 5 6 Good Balcony Good sound Parking Spacious Own transport sauna insulation place -ness connections Lähde: Haastattelututkimus 4/2016, n=779, Gemic/Norstatin paneeli
Slide 21: A new favourite – Ecological and energy-efficient new buildings
A new favourite – Ecological and energy-efficient new buildings Nearly 1/2 For over 1/5, consider energy- ecological Over 1/4 want a housing is very efficient housing new building important and are to be very ready to pay more important and are for it ready to pay more for it 21 Lähde: Haastattelutu
Slide 22: New housing-related services attracting interest
New housing-related services attracting interest Apartment Caretaker 43% 44% building 57% 56% services car sharing 21% Automated parcel 46% Smart home 54% and post point 79% YES NO
Slide 23: Case REDI
23 Case REDI ax eae =e SRW
Slide 24: REDI – a new kind of urban lifestyle
Almost REDI – a new kind of 85 % of urban lifestyle Majakka`s apartments • Total of 1.1 billion euro project reserved - shopping centre - six residential towers - hotel and office towers Nearly 1,500 new - a green deck and parking homes facility • Most modern shopping hub in Helsinki More than • Rea
Slide 25: As a REDI resident, you save an hour a day!
As a REDI resident, you save an hour a day! WHEN YOU LIVE IN REDI, YOU SAVE IN A DAY minutes THAT MEANS 7 HOURS A WEEK ADDITIONAL TIME FOR LIVING 1. Apartment 2. 3. services Tower services Retail services 25
Slide 26: Latest major projects
Latest major projects SRW 26
Slide 27: Aalto University campus building
Aalto University Room for campus building education, work facilities, • New campus building for Aalto stores and University’s School of Arts Design restaurant and Architecture and commercial premises in the Otaniemi Metro Centre • Total of 33.000 m2 in four levels Total value • The foundation stone
Slide 28: New central hospital project in Central Finland
New central hospital Over project in Central 300 Finland MEUR project • SRV chosen as a futher developer • Largest contract in SRV’s history to which do not commit own equity • The construction work planned to be started in August-September 2016 • Total value of the project 300 million euro
Slide 29: Bunkkeri building in Jätkäsaari
Bunkkeri building in 300 Jätkäsaari apartments • A hybrid project, combining swimming hall, sports facilities and 300 apartments • The sports facilities and swimming hall to be leased on a 25-year agreement to the City of Helsinki 25- • The construction work planned to be started in summer 2017 year
Slide 30: Tampere's Central Deck and Arena project
Finland´s Tampere’s Central Deck biggest and Arena project multi-purpose • Unique realization in city arena center on top of the railway track • Biggest multi-purpose arena in Finland • Group of companies created by SRV further develops the project – negotiations with interested financing partners 5
Slide 31: Thank You!
Thank You! Next: Coffee break and Russia operations 31
Slide 32: Largest commercial premises projects under construction
Largest commercial premises projects under construction (estimated figures) Project. location Worth of SRV Project type Level of Completion. % Completion Sold / For sale contract. MEUR DEVELOPMENT PROJECTS REDI. Kalasatama. Helsinki 390 Commercial and 26 Q3/2018 Sold parking Health and Wellbeing Cen
Slide 33: Largest developer-contracted housing projects under construction in Finland
Largest developer-contracted housing projects under construction in Finland (estimated figures) Project, location Worth of SRV Apartments, Completion Sold/for sale contract, piecec MEUR DEVELOPERCONTRACTING PROJECTS IN THE RS SYSTEM Espoon Niittyhuippu 57 200 Q4/2017 121/79 Helsingin Kvartto 31 66 Q