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January-June 2016
Results
August 26, 2016
26.8.2016 2
First Half 2016 Performance
Q2 occupancy up to 93.4% from 92.5% in Q1
Year-on-year net sales were up 1.2% & EBITDA was down
0.9% excluding FX & non-recurring items
Service income grew by 10.0%, penetration now at 13.0%
Cash flow from operations/ share EUR 0.33 (0.28)
Organic growth boosting NAV / share (EPRA) 4.81 (4.59)
Equity ratio 36.5% (37.9%), LTV 59.4% (63.1%)
Guidance for 2016 unchanged
26.8.2016 3
Unit Occupancy
91,4% 90,4%
97,2% 97,1%
92,5%
96,0%
99,8% 100,0% 99,1%
81,3%
93,5%
85,4%
95,6%
96,6%
93,5%
95,5%
98,5%
100,0% 99,9%
84,5%
70%
75%
80%
85%
90%
95%
100%
Q2-2015 Q2-2016
Group
Q2/16
93.4%
26.8.2016 4
Service Business Growing
70,3 80,7 93,0 111,1 144,8 150,3 73,3
11,2
12,1
14,2
15,2
16,9 20,3
11,0
13,7%
13,0%
13,2%
12,0%
10,4%
11,9%
13,0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
50
100
150
200
2010 2011 2012 2013 2014 2015 H1/2016
Rental income Service income Services of net sales
EUR million
26.8.2016 5
Technopolis Gårda Campus
In the inner city of Gothenburg,
Sweden
A growing market with strong
economic indicators
Built 1999 (A-C) and 2004 (D)
Flexible, relatively modern and
good quality property
Occupancy rate 94%
Customers:Telia, Fujitsu,
GoExcellent
Execution of strategy with entry to
the prioritized and publicly
communicated next target market
26.8.2016 6
Gårda - KeyTransaction Figures
Guaranteed NOI until 31.12.2017
Max MEUR 2.1 additional purchase price for new building rights
Seller to cooperate and assist in zoning process
Closing in July 2016
Significant upside potential through rent hikes, conversion and organic
expansion
KPI Key Figure
Price MEUR 126.6
Market yield requirement 4.75% (Gårda)
Cash-flow yield, initial 5.0%
Cash-flow yield, stabilized 6.0%
GLA (m2) 34,300
Office GLA (m2) 27,900
26.8.2016 7
Area Name m² EUR
million
Stabilized
yield, % *
Financial OCR/
Pre -OCR, %
Completion
Tallinn Löötsa 5 9,200 17.0 8.8 100 1/2016
Tampere Yliopist. 3&4 11,900 40.5 7.2 80.5 7/2016
Vilnius Delta 21,600 35.4 9.8 57.9 12/2016
Helsinki Ruoholahti 3 10,300 33.2 7.0 35.7 07/2018
Organic Growth Projects
On June 30, 2016, the projects in progress totaled EUR 109.1 million
Projects in grey are not completed as per June 30, 2016 i.e. financial occupancy is pre-let rate.
* Stabilized yield = estimated net operating income / cost
**The rentable area of Ruoholahti3 has been revised upwards after the announcement of the investment decision. A larger
rentable area has loweredthe pre-let rate.
8
26.8.2016
Ruoholahti 3
26.8.2016 9
Financing
H1/2016 2015 2014
Interest bearing debt, EUR million 905.0 864.8 841.9
Fixed rate, % 61.8 71.3 60.0
Average interest rate, % * 2.39 2.60 2.43
Capital weighted loan maturity,
years
5.5 5.9 6.1
Interest cover ratio, % 4.8 4.3 4.8
Loan to value, % 59.4 58.8 59.7
Equity ratio, % 36.5 39.3 38.5
Cash and equivalents, EUR million 26.1 39.4 28.3
* Excluding the hybrid loan
26.8.2016 10
2016 Review on Strategy to 2020
Business strategy & concept working well at home & abroad
Strategic territory still the Nordic-Baltic region
Focus on targets with optimal strategic fit
Campuses & locations where we can add maximum value
11
TECHNOPOLIS
COMPETITIVE
ADVANTAGE
Value-Adding Services
ƒ Cut the square meters
ƒ Buy services on demand
ƒ From cradle to grave
ƒ 5-star service delivery
Direct Customer Management
ƒ In sales and marketing
ƒ In service providing
ƒ In property maintenance &
management
International chain advantages
ƒ Branding advantages
ƒ Increasing scale-driven efficiencies
ƒ Rapid deployment of best practices
ƒ Increasing Group-wide solution sales
Cool, FlexibleWorkplaces
ƒ Less m2/person
ƒ Shared Infra & Services
ƒ Flexible, scalable up & down
ƒ Cool, fun & tribal
ƒ Access to the whole network
TheTechnopolis Concept
This is Our DNA
26.8.2016 12
Technopolis Campus Network 2016
We Have Successfully Copy-Pasted our Concept
Oulu
Vantaa
Espoo
Tampere
Jyväskylä
Kuopio
Lappeenranta
St. Petersburg 2008
Helsinki
Tallinn 2010
Vilnius 2013
Oslo 2013
Gothenburg 2016
26.8.2016 13
Rights Issue
EGM onAugust 31
The Board proposes a ca. EUR 125 million rights
issue
Pursuant to the shareholders’ pre-emptive
subscription price
Varma and Ilmarinen have indicated that they will
participate pro-rata
26.8.2016 14
HowWe Will Use Rights Issue Proceeds
Gårda acquisition
Oslo minority shareholding
Organic growth project pipeline
Future campus acquisitions
Strengthen the balance sheet
www.technopolis.fi Find us on: facebook.com/TechnopolisPlc
twitter.com/TechnopolisPlc
Thank you
Appendices: Additional Data
26.8.2016 17
Group
1-6/2016 1-6/2015 2015
Rentable space, m² * 740,300** 738,100 740,400**
Rent, €/m²/mo. avg.* 16.73 16.87 16.99
Financial occupancy rate, %* 93.4** 94.1 94.6**
Net rental income, EUR million 73.3 79.1 150.3
Net sales, EUR million 84.3 89.1 170.6
EBITDA, EUR million 45.4 50.2 93.0
Market yield requirement, avg., % * 7.69 7.81 7.73
Fair value of investment properties,
EUR million *
1,457.9 1,410.6 1,426.0
* At the end of the period.
** Under renovationQ2/2016: 13,500 m², 12/2015: 16,700 m²
26.8.2016 18
Finland
1-6/2016 1-6/2015 2015
Rentable space, m² * 527,140** 534,200 526,900**
Rent, €/m²/mo. avg.* 17.18 16.51 17.02
Financial occupancy rate, % * 91.7** 92.4 92.9**
Net rental income, EUR million 51.9 57.6 107.4
Net sales, EUR million 61.0 66.4 125.0
EBITDA, EUR million 33.5 38.1 69.0
Market yield requirement, avg., % * 7.8 7.9 7.8
Fair value of investment properties,
EUR million * 998.2 958.8 984.8
* At the end of the period.
** 6/2016: 10,500 m² under renovation. 12/2015: 16,700 m² under renovation.
26.8.2016 19
Baltic Rim
1-6/2016 1-6/2015 2015
Rentable space, m² * 148,650 139,100
147,00
0
Rent, €/m²/mo. avg. * 14.16 14.42 15.15
Financial occupancy rate, % * 99.3 99.6 99.5
Net rental income, EUR million 13.0 12.5 25.1
Net sales, EUR million 14.4 13.2 26.8
EBITDA, EUR million 7.5 7.1 14.2
Market yield requirement, avg., % * 8.7 8.9 8.7
Fair value of investment properties,
EUR million *
260.1 245.1 246.7
* At the end of the period.
26.8.2016 20
Scandinavia
1-6/2016 1-6/2015 2015
Rentable space, m² * 64,500** 64,800 66,500**
Rent, €/m²/mo. avg. * 19.56 22.05 21.50
Financial occupancy rate, % * 95.6** 97.2 97.1**
Net rental income, EUR
million
8.3 9.1 17.8
Net sales, EUR million 8.9 9.5 18.8
EBITDA, EUR million 4.4 4.9 9.9
Market yield requirement,
avg., % *
6.1 6.3 6.1
Fair value of investment
properties, EUR million *
199.6 207.1 194.4
* At the end of the period.
** 6/2016: 3,000 m2 under renovation, 12/2015: None.
26.8.2016 21
Leases
Lease stock, % of space
Maturity in years
June 30,
2016
2015 2014
<1 17 22 17
1-3 22 20 23
3-5 15 15 12
>5 18 19 22
Open-end leases 28 24 26
Av. lease term in months 36 36 39
Lease stock, EUR million 437.4 429.7 455.9
The ten largest customers let approximately 18.0 % of rented space and
accounted for 16.4% of rental income.
The single largest customer accounted for 4.0% of rented space and 2.2% of
rental income.
26.8.2016 22
2015-2020 Strategic FinancialTargets
Average net sales and EBITDA growth 10% p.a.
Service penetration 15% by 2020 for like-for-like real estate
5.5% return on capital employed p.a.
Equity ratio above 35% over the cycle
2326.8.2016
Investment Criteria
Sufficient scale
Good quality assets
Flexibility & adaptability
Location & connections
Service infrastructure
potential
Customer mix potential
Competitive valuation with
attractive risk-adjusted
return
26.8.2016 24
FairValue Changes 1-6/2016
EUR million Market
Yield
Related
Occupancy
Assumption Modernization
Other
Changes
Projects
in
Progress
Total
Finland 5.9 -1.1 -6.9 -0.9 0.7 -2.3
Baltic Rim 2.6 -1.1 1.3 -1.2 2.2 3.8
Scandinavia 1.5 0.0 -1.5 -3.0* 0.0 -3.0
Total 10.0 -2.2 -7.1 -5.1* 2.9 -1.5
* Mainly contract changes. In Norway, some revenues were allocated to services and were thus removed from fair value calculation.

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H1 2016 Performance and Outlook

  • 2. 26.8.2016 2 First Half 2016 Performance Q2 occupancy up to 93.4% from 92.5% in Q1 Year-on-year net sales were up 1.2% & EBITDA was down 0.9% excluding FX & non-recurring items Service income grew by 10.0%, penetration now at 13.0% Cash flow from operations/ share EUR 0.33 (0.28) Organic growth boosting NAV / share (EPRA) 4.81 (4.59) Equity ratio 36.5% (37.9%), LTV 59.4% (63.1%) Guidance for 2016 unchanged
  • 3. 26.8.2016 3 Unit Occupancy 91,4% 90,4% 97,2% 97,1% 92,5% 96,0% 99,8% 100,0% 99,1% 81,3% 93,5% 85,4% 95,6% 96,6% 93,5% 95,5% 98,5% 100,0% 99,9% 84,5% 70% 75% 80% 85% 90% 95% 100% Q2-2015 Q2-2016 Group Q2/16 93.4%
  • 4. 26.8.2016 4 Service Business Growing 70,3 80,7 93,0 111,1 144,8 150,3 73,3 11,2 12,1 14,2 15,2 16,9 20,3 11,0 13,7% 13,0% 13,2% 12,0% 10,4% 11,9% 13,0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 50 100 150 200 2010 2011 2012 2013 2014 2015 H1/2016 Rental income Service income Services of net sales EUR million
  • 5. 26.8.2016 5 Technopolis Gårda Campus In the inner city of Gothenburg, Sweden A growing market with strong economic indicators Built 1999 (A-C) and 2004 (D) Flexible, relatively modern and good quality property Occupancy rate 94% Customers:Telia, Fujitsu, GoExcellent Execution of strategy with entry to the prioritized and publicly communicated next target market
  • 6. 26.8.2016 6 Gårda - KeyTransaction Figures Guaranteed NOI until 31.12.2017 Max MEUR 2.1 additional purchase price for new building rights Seller to cooperate and assist in zoning process Closing in July 2016 Significant upside potential through rent hikes, conversion and organic expansion KPI Key Figure Price MEUR 126.6 Market yield requirement 4.75% (Gårda) Cash-flow yield, initial 5.0% Cash-flow yield, stabilized 6.0% GLA (m2) 34,300 Office GLA (m2) 27,900
  • 7. 26.8.2016 7 Area Name m² EUR million Stabilized yield, % * Financial OCR/ Pre -OCR, % Completion Tallinn Löötsa 5 9,200 17.0 8.8 100 1/2016 Tampere Yliopist. 3&4 11,900 40.5 7.2 80.5 7/2016 Vilnius Delta 21,600 35.4 9.8 57.9 12/2016 Helsinki Ruoholahti 3 10,300 33.2 7.0 35.7 07/2018 Organic Growth Projects On June 30, 2016, the projects in progress totaled EUR 109.1 million Projects in grey are not completed as per June 30, 2016 i.e. financial occupancy is pre-let rate. * Stabilized yield = estimated net operating income / cost **The rentable area of Ruoholahti3 has been revised upwards after the announcement of the investment decision. A larger rentable area has loweredthe pre-let rate.
  • 9. 26.8.2016 9 Financing H1/2016 2015 2014 Interest bearing debt, EUR million 905.0 864.8 841.9 Fixed rate, % 61.8 71.3 60.0 Average interest rate, % * 2.39 2.60 2.43 Capital weighted loan maturity, years 5.5 5.9 6.1 Interest cover ratio, % 4.8 4.3 4.8 Loan to value, % 59.4 58.8 59.7 Equity ratio, % 36.5 39.3 38.5 Cash and equivalents, EUR million 26.1 39.4 28.3 * Excluding the hybrid loan
  • 10. 26.8.2016 10 2016 Review on Strategy to 2020 Business strategy & concept working well at home & abroad Strategic territory still the Nordic-Baltic region Focus on targets with optimal strategic fit Campuses & locations where we can add maximum value
  • 11. 11 TECHNOPOLIS COMPETITIVE ADVANTAGE Value-Adding Services ƒ Cut the square meters ƒ Buy services on demand ƒ From cradle to grave ƒ 5-star service delivery Direct Customer Management ƒ In sales and marketing ƒ In service providing ƒ In property maintenance & management International chain advantages ƒ Branding advantages ƒ Increasing scale-driven efficiencies ƒ Rapid deployment of best practices ƒ Increasing Group-wide solution sales Cool, FlexibleWorkplaces ƒ Less m2/person ƒ Shared Infra & Services ƒ Flexible, scalable up & down ƒ Cool, fun & tribal ƒ Access to the whole network TheTechnopolis Concept This is Our DNA
  • 12. 26.8.2016 12 Technopolis Campus Network 2016 We Have Successfully Copy-Pasted our Concept Oulu Vantaa Espoo Tampere Jyväskylä Kuopio Lappeenranta St. Petersburg 2008 Helsinki Tallinn 2010 Vilnius 2013 Oslo 2013 Gothenburg 2016
  • 13. 26.8.2016 13 Rights Issue EGM onAugust 31 The Board proposes a ca. EUR 125 million rights issue Pursuant to the shareholders’ pre-emptive subscription price Varma and Ilmarinen have indicated that they will participate pro-rata
  • 14. 26.8.2016 14 HowWe Will Use Rights Issue Proceeds Gårda acquisition Oslo minority shareholding Organic growth project pipeline Future campus acquisitions Strengthen the balance sheet
  • 15. www.technopolis.fi Find us on: facebook.com/TechnopolisPlc twitter.com/TechnopolisPlc Thank you
  • 17. 26.8.2016 17 Group 1-6/2016 1-6/2015 2015 Rentable space, m² * 740,300** 738,100 740,400** Rent, €/m²/mo. avg.* 16.73 16.87 16.99 Financial occupancy rate, %* 93.4** 94.1 94.6** Net rental income, EUR million 73.3 79.1 150.3 Net sales, EUR million 84.3 89.1 170.6 EBITDA, EUR million 45.4 50.2 93.0 Market yield requirement, avg., % * 7.69 7.81 7.73 Fair value of investment properties, EUR million * 1,457.9 1,410.6 1,426.0 * At the end of the period. ** Under renovationQ2/2016: 13,500 m², 12/2015: 16,700 m²
  • 18. 26.8.2016 18 Finland 1-6/2016 1-6/2015 2015 Rentable space, m² * 527,140** 534,200 526,900** Rent, €/m²/mo. avg.* 17.18 16.51 17.02 Financial occupancy rate, % * 91.7** 92.4 92.9** Net rental income, EUR million 51.9 57.6 107.4 Net sales, EUR million 61.0 66.4 125.0 EBITDA, EUR million 33.5 38.1 69.0 Market yield requirement, avg., % * 7.8 7.9 7.8 Fair value of investment properties, EUR million * 998.2 958.8 984.8 * At the end of the period. ** 6/2016: 10,500 m² under renovation. 12/2015: 16,700 m² under renovation.
  • 19. 26.8.2016 19 Baltic Rim 1-6/2016 1-6/2015 2015 Rentable space, m² * 148,650 139,100 147,00 0 Rent, €/m²/mo. avg. * 14.16 14.42 15.15 Financial occupancy rate, % * 99.3 99.6 99.5 Net rental income, EUR million 13.0 12.5 25.1 Net sales, EUR million 14.4 13.2 26.8 EBITDA, EUR million 7.5 7.1 14.2 Market yield requirement, avg., % * 8.7 8.9 8.7 Fair value of investment properties, EUR million * 260.1 245.1 246.7 * At the end of the period.
  • 20. 26.8.2016 20 Scandinavia 1-6/2016 1-6/2015 2015 Rentable space, m² * 64,500** 64,800 66,500** Rent, €/m²/mo. avg. * 19.56 22.05 21.50 Financial occupancy rate, % * 95.6** 97.2 97.1** Net rental income, EUR million 8.3 9.1 17.8 Net sales, EUR million 8.9 9.5 18.8 EBITDA, EUR million 4.4 4.9 9.9 Market yield requirement, avg., % * 6.1 6.3 6.1 Fair value of investment properties, EUR million * 199.6 207.1 194.4 * At the end of the period. ** 6/2016: 3,000 m2 under renovation, 12/2015: None.
  • 21. 26.8.2016 21 Leases Lease stock, % of space Maturity in years June 30, 2016 2015 2014 <1 17 22 17 1-3 22 20 23 3-5 15 15 12 >5 18 19 22 Open-end leases 28 24 26 Av. lease term in months 36 36 39 Lease stock, EUR million 437.4 429.7 455.9 The ten largest customers let approximately 18.0 % of rented space and accounted for 16.4% of rental income. The single largest customer accounted for 4.0% of rented space and 2.2% of rental income.
  • 22. 26.8.2016 22 2015-2020 Strategic FinancialTargets Average net sales and EBITDA growth 10% p.a. Service penetration 15% by 2020 for like-for-like real estate 5.5% return on capital employed p.a. Equity ratio above 35% over the cycle
  • 23. 2326.8.2016 Investment Criteria Sufficient scale Good quality assets Flexibility & adaptability Location & connections Service infrastructure potential Customer mix potential Competitive valuation with attractive risk-adjusted return
  • 24. 26.8.2016 24 FairValue Changes 1-6/2016 EUR million Market Yield Related Occupancy Assumption Modernization Other Changes Projects in Progress Total Finland 5.9 -1.1 -6.9 -0.9 0.7 -2.3 Baltic Rim 2.6 -1.1 1.3 -1.2 2.2 3.8 Scandinavia 1.5 0.0 -1.5 -3.0* 0.0 -3.0 Total 10.0 -2.2 -7.1 -5.1* 2.9 -1.5 * Mainly contract changes. In Norway, some revenues were allocated to services and were thus removed from fair value calculation.