Tesi's performance and results 2016 Tesi is a Finnish venture capital and private equity company.

1. PERFORMANCE
AND RESULTS
2016

2. Highlights 2016
2
€165m
€45m
New investments and
commitments
17%
€160m
Revenue growth of
direct portfolio companies
Financial result
International capital into Finnish
companies

3. VC & PE market
• Fund-raising as well as investment and exit volumes have
continued at a good level in Finland and internationally. In
the current environment of low interest rates, capital seeks
asset categories with higher risk and yield expectations,
such as venture capital and private equity.
• In 2016 Finnish companies raised a record-setting 17
venture capital rounds of over 5 million euros, compared to
just 5-10 rounds each year during 2012–2015. Finnish start-
ups received the most venture capital in Europe (per GDP).
• In later-stage growth funds exit activity in particular has
remained active.
3

4. Objectives and results 2016
1.3.2017 Performance and Results 2016 4
 International capital
€159m from our network
to Finnish growth
companies
OBJECTIVES RESULTS
We invest in the growth
of Finnish companies
We develop the Finnish
VC & PE market
Our operations are
profitable
 Profit in 2016 €45m
 Cumulative profits €258m
2014 2015 2016
 New investments €165m
10 funds and
25 direct investments
47m€ 23m€
159m€ *
*includes some exceptionally large investment rounds
-26m€
86m€
45m€
82m€ 93m€
165m€

5. International capital to Finnish companies
1.3.2017 Performance and Results 2016 5
Capital in Tesi’s direct investments (m€)
• In 2016, 14 of Tesi’s direct investments raised a
total of 140 million euros from international
investors. These companies include M-Files,
Verto Analytics and Touhula.
• Tesi’s international portfolio funds invested a
total of 28 million euros in eight Finnish
companies.
• In addition to capital, international investors
bring valuable expertise and contact networks to
portfolio companies.

6. Investment focus
1.3.2017 Performance and Results 2016 6
We operate on equal terms with private investors
Venture Capital funds
Later-stage Growth funds
Venture Capital
Direct investments
Growth Capital
Direct investments
Industrial Investments
Direct investments

7. Result
Net gains from investments
€46M consist of realised and unrealised
changes in fair value:
• In funds €28M;
net gains were boosted by higher valuations
of Finnish VC funds and by exits.
• In direct investments €18M;
net gains consisted mainly of a rise in
valuations, fuelled by the good growth and
improved profitability of portfolio companies.
• Cumulative profit was €258M at the end of
the year.
1.3.2017 Performance and Results 2016 7
Consolidated statement of comprehensive income IFRS
EUR thousands 1-12/2016 1-12/2015
Net gains from venture capital and private equity funds 27 570 71 594
Net gains from direct investments 18 060 37 203
Net gains from investments, total 45 631 108 797
Net gains from financial securities 16 962 6 417
Income from fund management 447 467
Other operating income, total 17 409 6 884
Personnel expenses -4 737 -4 418
Depreciation and impairment -139 -148
Other operating expenses -2 981 -2 782
Operating profit / loss 55 184 108 333
Financial income and expenses 18 24
Profit / loss before taxes 55 202 108 357
Income taxes -10 601 -21 936
Profit / loss for financial year 44 601 86 421
Total comprehensive income (loss) for year 44 601 86 421

8. Balance sheet
Balance sheet value of funds €336M has
increased by €10M
• Capital calls €62M
• Capital distributions from funds €80M
• Realised and unrealised changes in fair
value recognised as a gain €28M.
Balance sheet value of direct investments
€189M has increased by €55M
• Payments for investments €63M
• Exits €-6M
• Realised and unrealised changes in fair
value recognised as a gain €18M
Current assets €410M consist mainly of
liquid assets (financial securities).
1.3.2017 Performance and Results 2016 8
Consolidated Balance Sheet IFRS
EUR thousands 31.12.2016 31.12.2015 Change
Venture capital and private equity funds 335 736 326 099 9 636
Direct investments 189 415 133 665 55 750
Venture capital and private equity investments, total 525 151 459 765 65 386
Non-current assets total 532 909 472 312 60 597
Current assets, total 410 072 423 004 -12 932
Assets, total 942 981 895 316 47 665
Equity
Share capital 438 992 438 992 0
Share premium account 215 855 215 855 0
Retained earnings 213 037 126 615 86 421
Profit for financial year 44 601 86 421 -41 820
Equity, total 912 485 867 884 44 601
Liabilities
Non-current liabilities, total 27 849 22 769 5 081
Current liabilities, total 2 646 4 663 -2 017
Liabilities, total 30 495 27 432 3 064
Equity and liabilities, total 942 981 895 316 47 665

9. Cash flow
Cash inflow from investments during the year amounted to
€105M and net cash flow was €-20M
1.3.2017 Performance and Results 2016 9
Cash flow 1-12/2016
€M Out In Net
VC & PE funds 62 80 18
Direct investments 63 25 -38
Total 125 105 -20

10. 1.3.2017 Performance and Results 2016 10
Examples of investments
10
INVESTMENTS TOTAL
 10 FUNDS €102M
 25 DIRECT €63M
Venture Capital funds Later-stage growth funds
Venture Capital Growth Capital Industrial Investments

11. 1.3.2017 Performance and Results 2016 11
Valmet Automotive and new investor CATL
form strategic partnership in electic vehicle
solutions
Visedo raised largest cleantech VC round in
Finland
Creandum, Inventure et al. invested in KNL
Networks
Wärtsilä acquires Eniram Finnish startups attract the most venture
capital in Europe (per GDP)
Vaadin raised two international financing
rounds, investors e.g. eEquity and Verdane

12. Recent events
• In January, Tesi made two new commitment
decision to funds.
• In direct investments, the Chinese CATL
became a minority owner of Valmet
Automotive. The company also signed an
agreement to acquire Semcon’s automotive
design service business in Germany.
• Tesi’s portfolio company ThermiSol was sold
to the leading insulation producer in the
Nordics, Jackon Group.
12

13. Performance and Results 2016