Kojamo Oyj

Quarterly Report • May 11, 2023

Interim Report 1–3/2023

11 May 2023 Jani Nieminen, CEO Erik Hjelt, CFO

Kojamo plc

• Financial development
• Outlook, financial targets and dividend policy

Summary of January–March 2023

Total revenue and net rental income grew

• Total revenue and net rental income grew
• Occupancy rate improved compared to the comparison period
• No substantial change in the fair value of investment properties since the year end
• Balance sheet is strong
• Good financing and liquidity situation is further improved by the financing arrangements made after the review period
• High hedging ratio reduced the impact of rising interest rates

Operating environment

General operating environment

Kojamo plc`s Interim Report January–March 2023

• The outlook for the world economy is still uncertain
• Inflation remains rapid, and central banks have continued with interest rate increases
• Finland's economy drifted into recession at the end of last year, and economic growth is expected to continue to be weak
• The rise in prices and interest rates has weakened the purchasing power of households. The employment situation has remained good

Industry key figures	2023E	2022
Residential start-ups, units	27,400	38,300
of which non-subsidised block-of-flats	11,700	22,600
start-ups in the capital region	n/a	10,917
Building permits granted, annual, units *	n/a	36,775
Construction costs, change, %	n/a	5.3
Prices of old block-of-flats in the whole country, change, %	-2.5	-0.1
Prices of old block-of-flats in the capital region, change, %	-3.0- -1.5	-1.4- -0.8
Rents of non-subsidised apartments in the whole country, change, %	2.3	0.9
Rents of non-subsidised apartments in the capital region, change, %	2.0-2.4	0.3-0.8
GDP growth, %	-0.2	2.1
Unemployment, %	7.0	6.8
Inflation, %	5.5	7.1

* Rolling 12 months, December 2022; Sources: Ministry of Finance, Economic Survey, 3/2023; RT's economic survey, March 2023; Statistics Finland, Building and dwelling production, December 2022; Statistics Finland, Building cost index, December 2022; Pellervo Economic Research PPT, Housing 2023 forecast; 5

Operating environment

Kojamo plc`s Interim Report January–March 2023

(% of all households)

The situation in the rental market has improved

• Urbanisation, decreasing average household size and demand focusing on central locations support the demand for rental apartments in the long term
• The population is growing again in the growth centres, which supports the demand for apartments
• The higher interest rate and general economic uncertainty increase rental demand

1986 1995 2004 2013 2022 1 person 2 persons 3+ persons

Development of household sizes

Population growth forecast 2021–2040, %

Development of rental household-dwelling units (% of all households)

* Helsinki, Espoo, Kauniainen, Vantaa ** Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Porvoo, Riihimäki, Sipoo, Tuusula, Vihti Sources: MDI, Population forecast 2040, September 2022; Pellervo Economic Research PTT; Development of household sizes and rental household-dwelling unit; Statistics Finland, Dwellings and housing conditions 2022; Nordea Asuntomarkkinakatsaus, February 2023

6

Operating environment

Completed apartments and population Housing production need 2020–2040, % growth in the capital region in 2000–2022 apartments population

Residential start-ups in Finland 2010–2023E Housing production and demand

• The amount of construction has turned to a clear decline
• Housing starts decreased already last year, and number of new housing starts is predicted to continue to fall
• The increase in construction costs has slowed down

Kojamo plc`s Interim Report January–March 2023 7 Sources: Statistics Finland, Population forecast; Housing production information of the municipalities in the capital region; Housing production need: VTT, Need for housing 2020-2040; Confederation of Finnish Construction Industries RT's economic survey, March 2023; Pellervo Economic Research PTT; Development of household sizes and rental household-dwelling unit;

	Key figures 1–3/2023
total revenue 108.2 M€ (99.5 M€, +8.8%)		net rental income 59.5 M€ (57.0 M€, +4.3%)	funds from operations (FFO) 28.8 (28.9 M€, -0.6%)	M€
fair value of investment properties	gross investments	profit excluding changes in value 1)	profit/loss before taxes
8.2 Bn€ (8.4 Bn€, -2.5%)	54.9 M€ (48.9 M€, +12.4%)	33.0 (35.0 M€, -5.7%)	24.0 M€ (62.9 M€, -61.8%)	M€

Ongoing development projects

Kojamo's projects on map

• 1,604 apartments*** under construction in the Helsinki region, Tampere and Turku
• Costs of completing these is EUR 125.0 million
• Owned plots enable starts of about 1,900 apartments
• For the time being, we will not make new investment decisions due to the uncertainty in the market

Estimate of completions, units***

*** Includes binding preliminary agreements of 119 apartments **** Includes 319 apartments that were completed in 1–3/2023

Completed apartments Q1/2023

319 completed apartments in five locations

Three houses with five floors Located in Helsinki 88 apartments

As Oy Vantaan Haltiantie 14

House with eight floors Located in Vantaa 62 apartments

Two houses with four floors Located in Espoo 69 apartments

As Oy Helsingin Junailijankuja 9a

House with six floors Located in Helsinki 46 apartments

Housing stock and customer distribution

• Kojamo's housing stock meets the demand nicely

55.9

1 person

2 person

family with children family with a single parent company

22.0

5.1

11

Housing stock by apartment type, %

23.3

studio apartment one bedroom

3.9

20.9

7.0

12.3

Key figures of sustainability Q1/2023

STRATEGIC FOCAL POINT 2020–2023: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT

	Q1	Target			Q1	Target
CO emissions per apartment, 2 t CO e/apartment, reduction % 2	-8.6	-4.0		My Lumo – utilisation rate, %	83	90
Energy consumption, kWh/m3	12.4	n/a		NPS	53	40
Waste recycling rate, %	31.3	55.0
	Q1	Target			Q1	Target
Data protection violations, pcs	0	0		eNPS (new employees)	100	n/a
Reports through the whistleblowing reporting channel, pcs	0	n/a		Accident frequency - Work accident - Commuting accident	0 11.29	0
				TR indicator	96.4	Over 92
	Ensuring long-term profitability and business growth		Sustainable and responsible operations	Transparent communications and reporting

We create better urban housing

Total revenue and net rental income increased

• The growth of property portfolio and development of rents had a positive impact on the total revenue
• Net rental income increased due to higher total revenue but was weakened by higher property maintenance and repair costs

Profit before taxes and FFO

• FFO remained on level with the previous year. FFO was affected by the increase in maintenance costs, especially in terms of heating costs, as well as financing costs

Financial occupancy rate improved

• Financial occupancy rate was 92.2% (91.9%) at the end of the review period
• Tenant turnover decreased from last year

Financial occupancy rate = (rental income / potential rental income at full occupancy) * 100. Financial occupancy rate does not include apartments under renovation Tenant turnover = (terminated rental agreements under the period / number of apartments) * 100

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 investment properties, M€

Modernisation investments and repairs, M€

Gross investments Sales of investment properties

Kojamo plc`s Interim Report January–March 2023

Modernisation investments Repairs

The value of investment properties was EUR 8.2 billion

• The fair value remained at the year-end level
• No significant transactions in the market during the beginning of the year
• The yield requirement for the fair value assesment was 3.97% which was the opinion of an external expert
• Future rent increases and the development gains from ongoing projects will have a positive impact on the fair values
• There will be an uplift in the fair value of EUR 100-110 million from 1,200 apartments coming out of restrictions by the end of 2024

* Investment properties include completed apartments, development projects and land areas as well as investment properties held for sale

19

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), %

High hedging ratio reduced the impact of rising interest rates on financing costs

The Group's liquidy, M€ Financing key figures 124 42 300 Cash and cash equivalents 124 M€ Financial assets 42 M€ Unused committed credit facilities 300 M€ 31 Mar 2023 Interest-bearing liabilities, M€ 3,637.8 Hedging ratio, % 84 Average interest rate, % ¹⁾ 1.9 Average loan maturity, years 3.3 Average interest rate fixing period, years 3.0 ¹⁾ Includes interest rate derivates

Kojamo plc`s Interim Report January–March 2023

Distribution of the Group's loan maturities, M€

Key figures per share

• Fair value decrease of the investment properties at the year end had a negative impact on key figures per share

Strategic targets 2020–2023

Key figure	Actual 1–3/2023	Actual 2022	Actual 2021	Actual 2020	Target
Annual growth of total revenue, %	8.8	5.5	2.0	2.3	4–5
Annual investments, M€	54.9	501.6	356.9	371.2	200–400
FFO/total revenue, %	26.6 *	38.9	39.1	39.5	> 36
Loan to Value (LTV), %	42.9	43.7	37.7	41.4	< 50
Equity ratio, %	44.5	45.3	49.0	45.6	> 40
Net Promoter Score (NPS)**	53	45	20	36	40

* The whole year's property taxes are recognized in Q1's result.

** The calculation method has changed 2022 for example including digital services in calculation. Target and actual for years 2021 and 2020 have not been adjusted to reflect the current calculation method.

Outlook, financial targets and dividend policy

Outlook for Kojamo in 2023 unchanged

Kojamo estimates that in 2023, the Group's 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 management's assessment of total revenue, property maintenance costs and repairs, administrative expenses, financial expenses, taxes to be paid and new development to be completed, as well as the management's view on future developments in the operating environment.

The outlook takes into account the estimated occupancy rate and rises in rents as well as the number of apartments to be completed. The outlook does not take into account the impact of potential acquisitions or disposals on total revenue and FFO, nor the impact on FFO of potential premature funding of the Eurobond due in 2024.

The management can influence total revenue and FFO through the company's business operations. In contrast, the management has no influence over market trends, the regulatory environment or the competitive landscape.

Dividend policy

Kojamo's objective is to be a stable dividend payer whose annual dividend payment will be at least 60 per cent of FFO, provided that the Group's equity ratio is 40 per cent or more and taking account of the company's financial position.

Dividend history

Per share key figures have been adjusted to reflect the impact of the decision by the Extraordinary General Meeting of Shareholders on 25 May 2018 regarding the share split. In the share split the shareholders received 30 new shares per each existing share Dividend, € / share Dividend, % of FFO

Summary

Operations continued steadily: total revenue and net rental income grew

FFO remained at year-end

level

Occupancy rate developed positively, and the demand for rental apartments is on the rise

Our balance sheet is strong, and liquidity has remained good

Thank you!

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 Interim Report January–March 2023

Half-Year Financial Report for January-June 2023 to be published on 17 August 2023

28

Kojamo's apartment portfolio

Region	Number of apart ments, units	Number of commercial premises and other leased premises, units	Fair value, (EUR million)	Fair value, (EUR thousand / unit)	Fair value, (EUR / sqm)	Financial occupancy rate, %3)	Share of revenue, %
Helsinki region	24,362	462	5,865	236	4,392	91.0	67
Tampere region	3,899	113	608	152	2,958	96.0	9
Turku region	2,047	27	303	146	2,714	94.7	5
Others	9,242	149	910	97	1,838	94.4	20
Total	39,550	751	7,6861)	191	3,579	92.2	100
Others			5112)
Total portfolio	39,550	751	8,197			92.2	100

Apartment distribution, %

through shares

2) Fair value of ongoing projects under construction, plots owned by the company and ownership of certain assets through shares and IFRS 16 right-of-use assets 3) Financial occupancy rate does not include commercial premises and other leased premises

Kojamo plc`s Interim Report January–March 2023 30 1) The figures reflect income-generating portfolio assets, which excludes new projects under construction, plots owned by the company and ownership of certain assets

1,485 apartments under construction

• During the review period, 0 (0) apartments were acquired, 0 (0) sold and 319 (270) completed
• During the period, construction of 0 (161) apartments was started

+6.4%

Development of apartment portfolio, units

Apartments under construction, units

Strategic focal points 2020–2023

Renewal through digital solutions The most competent personnel and a dynamic place to work Responsibility and sustainable development Strong growth Operational excellence Delivering the best customer experience We offer easy and effortless services for our customers and create added value through services We seek profitable growth with multi-channel approach and optimised financing structure We create competitiveness and profitability through industryleading operating models Responsibility is a part of our DNA and plays important role in the work of everyone at Kojamo We improve our business and create added value to our customers by taking advantage of solutions enabled by digitalisation We are known for dynamic and effective corporate culture. We ensure our future competitiveness through competence development and employee experience

Our Digital Roadmap will guide us from today to year 2023 according to our strategy

Customer experience and servitisation

Scalability of operations, employee experience

Digitalisation of properties and services

Knowledge-based management and AI

Enabling technology and IT architecture

NPS 65 Digital services

83% My Lumo user coverage

As at 31 March 2023

Kojamo plc`s Interim Report January–March 2023 1) Consists of new development projects involving Kojamo's own plot reserve.

2) Consists of new development projects involving Kojamo's own plot reserve where planning has started 2021 or later.

Sustainability is visible in our every day life

Sustainable cities

We commit to complying with the UN Sustainable Development Goals and to use carbon-neutral energy in our properties by 2030

100% of properties use carbonneutral property electricity

29,000 apartments' indoor temperature controlled by optimization solution

100% of Kojamo's premises are WWF Green Office certified

-3.0% heating index (kWh/m³ )

0.99 (Δ-9.4%) carbon footprint (t CO2e/ apartment)

33% waste recycle rate

our goal to improve energy consumption during 2017– 2025 -7.5% of which we have achieved 98%*

Investments to improve energy efficiency are a part of Kojamo's repairs and modernisation investments

The most competent personnel and a dynamic place to work

100% Coverage of performance appraisals of personnel

60/40% Gender ratio (W/M)

95,9 occupational safety index at our construction sites

The best customer experience

45 Net Promoter Score NPS

Shared cars available for all our tenants

A responsible corporate citizen

Anti-grey economy models exceed legislative requirements

6,288 indirect employment effect (person years)

~95 tax footprint, EUR million

3 data protection violations or deviations **

50

grants to support the physical activity and sports of youth and families with children living in Lumo homes

All figures represent the situation at the end 2022 unless otherwise stated * = In line with VAETS II programme, at the end of 2022, estimate ** 3 security violation notices Kojamo plc`s Interim Report January–March 2023 36

Sustainability commitments and reporting

Our sustainability commitments

We aim to use carbonneutral energy in our properties by 2030

We commit to complying with the UN Sustainable Development Goals

We commit to improve our energy efficiency by 7.5% during 2017–2025

Our sustainability reporting and recognitions

72/100

We apply EPRA's Sustainability Best Practice Recommendations in our reporting

assessment

We participated the global GRESB sustainability

Our sustainability report is in accordance with GRI Standards

Our memberships

Kojamo's ten largest shareholders (as at 31 March 2023)

	Shareholder	Number of shares	% of shares
	Nominee-registered shareholders	82,933,770	33.6
1.	Heimstaden Bostad AB	49,389,283	20.0
2.	Ilmarinen Mutual Pension Insurance Company	20,537,814	8.3
3.	Varma Mutual Pension Insurance Company	19,362,375	7.8
4.	The Finnish Industrial Union	16,067,182	6.5
5.	Trade Union of Education in Finland	11,814,417	4.8
6.	Finnish Construction Trade Union	8,208,609	3.3
7.	Trade Union PRO	4,904,150	2.0
8.	Trade Union for the Public and Welfare Sectors	4,700,000	1.9
9.	Service Union United PAM	4,320,297	1.7
10.	Elo Mutual Pension Insurance Company	3,071,000	1.2
	Other shareholders	21,835,502	8.8
Total		247,144,399	100.0

Development of the number of the shareholders

Share of nominee-registered and direct foreign ownership, %

Source: Euroclear Finland

	1–3/2023	1–3/2022	Change, %	2022
Total revenue, M€	108.2	99.5	8.8	413.3
Net rental income, M€	59.5	57.0	4.3	280.1
Net rental income margin, %	55.0	57.3		67.8
Profit/loss before taxes, M€	24.0	62.9	-61.8	-499.8
Gross investments, M€	54.9	48.9	12.4	501.6
Funds From Operations (FFO), M€	28.8	28.9	-0.6	160.7
FFO per share, €	0.12	0.12	0.0	0.65
Financial occupancy rate, %	92.2	91.9		92.0
Fair value of investment properties, Bn€	8.2	8.4	-2.5	8.2
Number of apartments	39,550	37,168		39,231
Number of apartments under construction	1,485	2,566		1,804
EPRA NRV per share, €	19.23	21.90	-12.2	19.53
Equity ratio, %	44.5	46.9		45.3
Loan to Value (LTV), %	42.9	37.4		43.7

Consolidated income statement

M€	1–3/2023	1–3/2022	2022
Total revenue	108.2	99.5	413.3
Maintenance expenses	-42.4	-36.7	-103.1
Repair expenses	-6.3	-5.8	-30.2
Net rental income	59.5	57.0	280.1
Administrative expenses	-9.9	-9.6	-43.1
Other operating income and expenses	0.4	0.1	3.5
Profit/loss on sales of investment properties	-	-	0.2
Profit/loss on sales of trading properties	-	-	0.0
Profit/loss on fair value of investment properties	-9.0	27.9	-682.0
Depreciation, amortisation and impairment losses	-0.3	-0.3	-1.2
Operating profit/loss	40.7	75.3	-442.5
Total amount of financial income and expenses	-16.6	-12.3	-57.4
Share of result from associated companies	0.0	-	0.1
Profit/loss before taxes	24.0	62.9	-499.8
Current tax expense	-4.0	-4.3	-17.3
Change in deferred taxes	-0.8	-8.2	117.2
Profit/loss for the period	19.2	50.4	-399.8

Balance sheet

M€	31 Mar 2023	31 Mar 2022	31 Dec 2022
Non-current assets
Intangible assets	0.7	0.7	0.7
Investment properties	8,189.5	8,405.6	8,150.2
Property, plant and equipment	28.2	28.7	28.4
Investments in associated companies	1.3	1.5	1.5
Financial assets	0.7	0.6	0.7
Non-current receivables	6.7	6.9	6.7
Derivatives	49.5	5.9	53.8
Deferred tax assets	3.6	6.0	1.5
Total non-current assets	8,280.1	8,455.9	8,243.4
Non-current assets held for sale	7.6	1.1	-
Current assets
Trading properties	0.1	0.1	0.1
Derivatives	0.1	0.7	0.2
Current tax assets	1.8	2.3	4.0
Trade and other receivables	11.4	9.9	11.1
Financial assets	42.5	104.7	104.0
Cash and cash equivalents	123.6	478.2	119.4
Total current assets	179.5	596.0	238.9
TOTAL ASSETS	8,467.2	9,053.0	8,482.3

M€	31 Mar 2023	31 Mar 2022	31 Dec 2022
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	39.6	-2.9	43.0
Invested non-restricted equity reserve	164.4	164.4	164.4
Retained earnings	3,464.2	3,991.4	3,541.4
Equity attributable to shareholders of the parent company	3,762.1	4,246.8	3,842.7
Total equity	3,762.1	4,246.8	3,842.7
Non-current liabilities
Loans and borrowings	3,277.3	3,508.2	3,330.5
Deferred tax liabilities	875.7	992.1	873.7
Derivatives	1.0	16.0	1.4
Provisions	0.2	0.4	0.3
Other non-current liabilities	5.1	5.2	5.0
Total non-current liabilities	4,159.3	4,521.9	4,210.9
Liabilities related to non-current assets held for sale	7.2	-	-
Current liabilities
Loans and borrowings	360.5	114.1	347.7
Derivatives	0.0	0.1	0.0
Current tax liabilities	0.0	2.9	2.5
Trade and other payables	178.0	167.3	78.5
Total current liabilities	538.5	284.4	428.7
Total liabilities	4,705.0	4,806.3	4,639.6
TOTAL EQUITY AND LIABILITIES	8,467.2	9,053.0	8,482.3

Financial key figures

	31 Mar 2023	31 Dec 2022	30 Sep 2022	30 Jun 2022	31 Mar 2022
Equity ratio, %	44.5	45.3	48.7	47.9	46.9
Interest cover	3.7	3.9	3.9	3.9	4.0
Loan to Value (LTV), %	42.9	43.7	39.9	40.5	37.4
Hedging ratio, %	84	84	92	91	93
Average interest rate, % ¹⁾	1.9	1.9	1.7	1.7	1.8
Average loan maturity, years	3.3	3.5	3.7	3.9	4.1
Average interest rate fixing period, years	3.0	3.2	3.5	3.7	4.0

¹⁾ Includes interest rate derivates

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 commitment or investment decision.

This presentation includes forward-looking statements, which include statements regarding the Kojamo's business strategy, operating and financial targets, financial condition, profitability, results of operations and market data, as well as other statements that are not historical facts. Words such as "believe," "anticipate," "plan," "expect," "target," "estimate," "project," "predict," "forecast," "guideline," "should," "aim," "continue," "could," "guidance," "may," "potential," "will," as well as similar expressions and the negative of such expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying these statements. By their nature, forwardlooking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. Undue reliance should not be placed on these forward-looking statements. Except for any ongoing disclosure obligation as required by applicable law, Kojamo does not have any intention or obligation to publicly update or revise any forward-looking statements, whether to reflect any future events or circumstances or otherwise.