Kojamo Oyj

Quarterly Report • May 12, 2022

Interim Report 1–3/2022

12 May 2022 Jani Nieminen, CEO Erik Hjelt, CFO

Kojamo plc

• Summary of January–March 2022
• Financial development
• Outlook, financial targets and dividend policy

Operating environment

General operating environment

• Finland's economic growth is estimated to slow down due to the war in Ukraine and the related sanctions
• Prices are expected to continue to increase. This will reduce household purchasing power and the savings rate. However, the reopening of the economy and the recovering demand for services will support the private consumption growth
• This year, the housing start-ups are estimated to decrease from last year

Kojamo plc`s Interim Report January–March 2022

Industry key figures	2022E	2021
Residential start-ups, units	40,000	44,000
of which non-subsidised block-of-flats	20,000	23,000
start-ups in the capital region	n/a	16,947
Building permits granted, annual, units	n/a	44,921
Construction costs, change, %	n/a	10.2
Prices of old block-of-flats in the whole country, change, %	2.5	4.0
Prices of old block-of-flats in the capital region, change, %	1.2-3.5	0.1-6.2
Rents of non-subsidised apartments in the whole country, change, %	1.3	0.8
Rents of non-subsidised apartments in the capital region, change, %	1.0-1.5	0.8
GDP growth, %	1.5	3.5
Unemployment, %	7.2	7.7
Inflation, %	4.0	2.2

Sources: Housing production information of the municipalities in the capital region; Statistics Finland, Building and dwelling production December 2021; Pellervo Economic Research PPT, Housing 2022 forecast; Etla Suhdanne, spring 2022; Ministry of Finance, Economic Survey, spring 2022, 13 April 2022

Operating environment

The pandemic has impacted the rental market but the market situation is expected to improve gradually

• The pandemic has had a temporary impact on occupancy rates
• The COVID-19 restrictions were lifted in the beginning of March
• Rising interest rates will make rental housing relatively more attractive than owner-occupied housing
• Urbanisation, decreasing average household size and demand focusing on central locations support the demand for rental apartments

Population growth forecast 2020–2040, %

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

5

Kojamo plc`s Interim Report January–March 2022

* Helsinki, Espoo, Kauniainen, Vantaa ** Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Porvoo, Riihimäki, Sipoo, Tuusula, Vihti Sources: MDI, Population forecast 2020–2040, Urbanisation scenario; Pellervo Economic Research PTT; Development of household sizes and rental household-dwelling units: Statistics Finland, Dwellings and housing conditions 2020; Nordea Asuntomarkkinakatsaus, April 2022

Operating environment

Completed apartments and population Housing production need 2020–2040, % growth in the capital region in 2000–2021 apartments population 0 10,000 20,000 30,000 0 5,000 10,000 15,000 20,000 2000 2005 2010 2015 2020 Completed apartments, Vantaa Completed apartments, Espoo Completed apartments, Helsinki Population growth in the capital region

Residential start-ups in Finland 2008–2022e Housing production and demand

• The housing investments are expected to slow down this year, but housing start-ups will remain at a relatively high level
• Increasing construction costs and challenges with the availability of materials and labour as well as general economic uncertainty may, however, significantly slow down housing production

Kojamo plc`s Interim Report January–March 2022 6 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 business survey October 2021

	Key figures 1–3/2022
total revenue 99.5 M€ (97.2 M€, +2.4%)		net rental income 57.0 M€ (55.5 M€, +2.8%)	funds from operations (FFO) 28.9 M€ (27.9 M€, +3.6%)
fair value of investment properties	gross investments	profit excluding changes in value 1)	profit before taxes
8.4 Bn€ (7.1 Bn€, +18.9%)	48.9 M€ (68.0 M€, -28.2%)	35.0 (33.6 M€, +4.1%)	62.9 M€ M€ (177.1 M€, -64.5%)

2,566 apartments under construction

• During the review period, 270 (45) were completed
• During the period, construction of 161 (40) apartments was started

8

-2.0%

31 Mar 2022

Strong project pipeline

Kojamo's projects on map

• 2,566 apartments under construction, in the Helsinki region, Tampere and Turku
• Co-operation agreements on the construction of about 600 apartments
• Metropolia property development project to create even 1,000 apartments, as six former educational properties will be converted into residential use

Estimate of completions, units***

Kojamo plc`s Interim Report January–March 2022 9 In addition to pre-agreements with construction companies, Kojamo has projects in planning phase and in its plots reserve, that are excluded in the information presented in here ** Estimate for the year 2022 includes 270 apartments that were completed in 1–3/2022

*** Apartments that are a part of co-operation agreements, but have been started are listed as 'Under construction'

Lumo – Easily best living

Lumo is urban life at its best.
Lumo rental homes offer safe, convenient and environmentally friendly housing paired with the best housing services.	Services of a new customer	Services during tenancy
Lumo homes are located in the best areas of Finland's largest cities, close to a wide range of services and good public transport links.	Pets are welcome 50-100M broadband included in rent	Lumo real estate management and customer service Lumo janitors
	Sustainable interior paints Electricity contract tendering Insurance service	Parcel lockers Flexible home swapping Versatile events for tenants Benefits from partners
Communal spaces Apartments	Move and installation service Move out cleaning service Key courier	Installation service Installation of dishwasher Car-sharing
Services Additional services	service
Kojamo plc`s Interim Report January–March 2022		10

• Lumo real estate management and customer service
• Lumo janitors
• Parcel lockers
• Flexible home swapping
• Versatile events for tenants
• Benefits from partners
• Installation service
• Installation of dishwasher

10

Our sustainability work is proceeding

• As a part of our action plan aimed at zero emissions for our properties by 2030, we made decisions on geothermal heating investments in the first quarter. Geothermal heating will be installed at seven of our properties
• We started a pilot project that adheres to the principles of Green Deal demolition. The old shopping centre in Puotila will be demolished and replaced with apartments and business premises
• We will continue to work throughout our entire value chain to combat climate change by launching two responsibilityrelated Lumo services: carbon-free district heating and a carbon footprint test

We commit to complying with the UN Sustainable Development Goals

We aim to use carbon-neutral energy in our properties by 2030

Financial development

Kojamo plc`s Interim Report January–March 2022 12

Total revenue and net rental income increased

• The growth of property portfolio and rental growth had a positive impact and the decrease on financial occupancy rate had a negative impact on the total revenue
• Net rental income increased due to higher total revenue and lower repair costs, but was weakened by higher property maintenance costs

Positive development with profit before taxes and FFO

• Profit before taxes and excluding fair value changes of investment properties increased
• The FFO growth was attributable to the improvement in net rental income

Kojamo plc`s Interim Report January–March 2022

Funds From Operations (FFO), M€ and € / share

Funds From Operations (FFO) € / share

+3.6% 116.4 140.7 151.4 153.1 27.9 28.9 0.49 0.57 0.61 0.62 0.11 0.12 2018 2019 2020 2021 1–3/2021 1–3/2022 * Changes in value = Profit/loss on fair value of investment properties Changes in the total number of Kojamo shares have an impact on relative development of FFO

per share since 2018. The formula used in the calculation was changed in 2021 regarding current taxes from disposals. The comparison figures for 2020 and 1-3/2021 have been adjusted to reflect the current calculation method

COVID-19 pandemic had a substantial effect on the financial occupancy rate

• COVID-19 pandemic and the continued restrictions at the beginning of the year have affected the amount of supply as well as migration
• Rent receivables to total revenue on a low level of 1.1% (1.1%)

Financial occupancy rate, %

Tenant turnover, % excluding internal turnover

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

Kojamo plc`s Interim Report January–March 2022

Development of Like-for-Like rental income

The past 12 months compared to the previous 12-month period

Investments proceeding according to strategy

• Ongoing development projects have proceeded according to plans
• Repairs and modernisation investments slightly lower than in the previous year

Gross investments and sales of investment properties, M€

Modernisation investments and repairs, M€

Kojamo plc`s Interim Report January–March 2022

67.6 62.9 Modernisation investments Repairs

17

The value of investment properties was EUR 8.4 billion

• The fair value developed positively during the review period especially due to investments and positive development margins

18

* Investment properties include completed apartments, development projects and land areas as well as investment properties held for sale ** 31 March 2022 and 31 December 2021 include 4 apartments as part of development projects

Kojamo plc`s Interim Report January–March 2022

Plot and real estate development reserve 31 March 2022

			Owned plots and development projects 1
	Apartments under construction	Binding preliminary agreements	Metropolia development project	Others	In total
Investment / actual costs incurred, M€	388.7	-	72.9	60.9	522.5
Cost of completion, M€	257.2	122.9	n/a	n/a	380.1
1,000 fl.sq.m.	n/a	n/a	74	91
Apartments	2,566	636	~1,000	~1,5002	~5,700

94% of plot and real estate development reserve is located in Helsinki region

Kojamo estimates that investments in development projects amount to approximately EUR 280–330 million in 2022

To be completed in Q2/2022

Luotsikatu 1 a, Helsinki

Korkoontie 6, Espoo

Niittykatu 8, Espoo

Piispanristi, Espoo

Kojamo plc`s Interim Report January–March 2022

1) The management's estimate of the fair value, building rights of plots and number of apartments 2) The management's estimate, currently approximately 250 apartments in existing residential buildings 19

Equity ratio and Loan to Value (LTV)

The share issue improved the equity ratio by 1.6 percentage points

Kojamo plc`s Interim Report January–March 2022

2021

Key figures per share improved year-on-year

• Fair value growth of the investment properties had a positive impact on key figures per share

1) 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

Kojamo plc`s Interim Report January–March 2022

Strong financial position and high hedging ratio

Average interest rate includes interest rate derivatives. 31 March 2022 heding ratio was 93 % and the committed unused credit facilities amounted to 300 M€.

22

Loan amounts presented as IFRS figures. In addition, lease liabilities amounting to EUR 73.6 million are included in interest-bearing liabilities

Distribution of the Group's loan maturities, M€

Kojamo plc`s Interim Report January–March 2022

Strategic targets 2020–2023

Key figure	Actual 1–3/2022	Actual 2021	Actual 2020	Target
Annual growth of total revenue, %	2.4	2.0	2.3	4–5
Annual investments, M€	48.9	356.9	371.2	200–400
FFO/total revenue, %	29.1	39.1	39.5	> 36
Loan to Value (LTV), %	37.4	37.7	41.4	< 50
Equity ratio, %	46.9	49.0	45.6	> 40
Net Promoter Score (NPS)*	38	20	36	40

* The calculation method has changed during the review period 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. Actual 1-3/2022 calculated with old method does not significantly deviate from Q4/2022 actual

Kojamo plc`s Interim Report January–March 2022 23

Outlook, financial targets and dividend policy

Kojamo plc`s Interim Report January–March 2022 24

Outlook for Kojamo in 2022 unchanged

Kojamo estimates that in 2022 the Group's total revenue will increase by 3–6 per cent year-on-year. In addition, Kojamo estimates that the Group's FFO for 2022 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.

The management can influence total revenue and FFO through the company's business operations. In contrast, the management has no influence over COVID-19 restrictions, market trends, the regulatory environment or the competitive landscape.

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 policy

Total revenue and net rental income as well as FFO increased. Our liquidity is very good

In spite of the challenging operating environment our ongoing projects have proceeded as planned

There are positive signs in the rental market after the COVID-19 restrictions were lifted in March

Kojamo plc`s Interim Report January–March 2022 27

Thank you!

Contact details:

CEO Jani Nieminen, tel. +358 20 508 3201

CFO Erik Hjelt, tel. +358 20 508 3225

Group Treasurer, Investor Relations Niina Saarto, tel. +358 20 508 3283

www.kojamo.fi

Half-Year Financial Report for January-June 2022 to be published on 18 August 2022

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	22,461	420	5,959	260	4,737	90.4	66
Tampere region	3,899	114	644	161	3,132	97.5	10
Turku region	1,856	19	288	153	2,705	95.5	5
Others	8,952	145	918	101	1,892	93.9	20
Total	37,168	698	7,8101)	206	3,799	91.9	100
Others			5972)
Total portfolio	37,168	698	8,407			91.9	100

Apartment distribution, %

Kojamo plc`s Interim Report January–March 2022 30 1) The figures reflect income-generating portfolio assets, which excludes ongoing projects, plots owned by the company and ownership of certain assets through shares 2) Fair value of ongoing projects, 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

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

80% My Lumo user coverage

As at 31 March 2022

Kojamo plc`s Interim Report January–March 2022

Sustainability programme guides our sustainability work from 2021 onwards

STRATEGIC FOCAL POINT 2020–2023: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT

We create better urban housing

Kojamo plc`s Interim Report January–March 2022 1) Consists of new development projects involving Kojamo's own plot reserve

2) The personnel survey was renewed in 2021, the results are not comparable with previous years

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 Kojamo's premises are WWF Green Office certified

100% of properties use water certfified property electricity

28,000 apartments' indoor temperature controlled by IoT solution

-3.5% heating index (kWh/m³ )

-20.6% carbon footprint (kg CO2e/ apartment)

40% waste recycle rate

our goal to improve energy consumption during 2017– 2025 -7.5% of which we have achieved 100%*

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

61% of personnel are women

95 occupational safety index

The best customer experience

20 Net Promoter Score

Shared cars available for our tenants

A responsible corporate citizen

Anti-grey economy models exceed legislative requirements

7,035 indirect employment effect (person years)

~104 tax footprint, EUR million

0 data protection violations or deviations

150

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 2021 unless otherwise stated * = In line with VAETS II programme, at the end of 2021, estimate Kojamo plc`s Interim Report January–March 2022 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

77/100

We apply EPRA's Sustainability

We participated the global GRESB sustainability

assessment

Best Practice Recommendations in our reporting

Our sustainability report is in accordance with GRI Core level

Kojamo's ten largest shareholders (as at 31 March 2022)

	Shareholder	Number of shares	% of shares
	Nominee-registered and direct foreign shareholders	132,397,114	53.6
1.	Ilmarinen Mutual Pension Insurance Company	20,537,814	8.3
2.	Varma Mutual Pension Insurance Company	19,362,375	7.8
3.	The Finnish Industrial Union	16,506,142	6.7
4.	Trade Union of Education in Finland	11,881,498	4.8
5.	Finnish Construction Trade Union	8,208,609	3.3
6.	Trade Union PRO	5,154,150	2.1
7.	Service Union United PAM	4,800,000	1.9
8.	Trade Union for the Public and Welfare Sectors	4,250,000	1.7
9.	Elo Mutual Pension Insurance Company	2,514,409	1.0
10.	The State Pension Fund of Finland	1,700,000	0.7
	Other Finnish shareholders	19,832,288	8.0
Total		247,144,399	100.0

Development of the number of the shareholders

Flagging notifications exceeding flagging threshold

Shareholder	Transaction announced	Threshold	Ownership according to flagging
Heimstaden Bostad AB	28 Feb 2022	15%	15.00%

Source: Euroclear Finland

	1–3/2022	1–3/2021	Change, %	2021
Total revenue, M€	99.5	97.2	2.4	391.7
Net rental income, M€	57.0	55.5	2.8	262.3
Net rental income margin, %	57.3	57.0		67.0
Profit before taxes, M€	62.9	177.1	-64.5	1,278.9
Gross investments, M€	48.9	68.0	-28.2	356.9
Funds From Operations (FFO), M€	28.9	27.9	3.6	153.1
FFO per share, €	0.12	0.11	9.1	0.62
Financial occupancy rate, %	91.9	94.9		93.9
Fair value of investment properties, Bn€	8.4	7.1	18.9	8.3
Number of apartments	37,168	35,847		36,897
Number of apartments under construction	2,566	2,619		2,675
EPRA NRV per share, €	21.90	17.55	24.8	22.04
Equity ratio, %	46.9	45.5		49.0
Loan to Value (LTV), %	37.4	40.2		37.7

Consolidated income statement

M€	1–3/2022	1–3/2021	2021
Total revenue	99.5	97.2	391.7
Maintenance expenses	-36.7	-35.4	-96.9
Repair expenses	-5.8	-6.3	-32.4
Net rental income	57.0	55.5	262.3
Administrative expenses	-9.6	-9.3	-37.3
Other operating income and expenses	0.1	0.3	3.9
Profit/loss on sales of investment properties	-	0.3	0.3
Profit/loss on fair value of investment properties	27.9	143.5	1,105.7
Depreciation, amortisation and impairment losses	-0.3	-0.3	-1.2
Operating profit	75.3	189.9	1,333.7
Total amount of financial income and expenses	-12.3	-12.8	-54.9
Share of result from associated companies	-	-	0.1
Profit before taxes	62.9	177.1	1,278.9
Current tax expense	-4.3	-4.7	-18.8
Change in deferred taxes	-8.2	-30.6	-236.7
Profit for the period	50.4	141.8	1,023.4

M€	31 Mar 2022	31 Mar 2021	31 Dec 2021
ASSETS
Non -current assets
Intangible assets	0.7	0.4	0.8
Investment properties	8,405.6	7,072.3	8,326.4
Property, plant and equipment	28.7	29.6	28.8
Investments in associated companies	1.5	1.1	1.5
Financial assets	0.6	0.7	0.7
Non -current receivables	6.9	7.8	6.9
Derivatives	5.9	-	-
Deferred tax assets	6.0	15.2	10.1
Total non -current assets	8,455.9	7,127.1	8,375.2
Non -current assets held for sale	1.1	-	1.1
Current assets
Trading properties	0.1	0.1	0.1
Derivatives	0.7	0.3	0.4
Current tax assets	2.3	1.1	5.2
Trade and other receivables	9.9	10.2	8.9
Financial assets	104.7	81.6	128.8
Cash and cash equivalents	478.2	189.9	197.0
Total current assets	596.0	283.2	340.5
TOTAL ASSETS	9,053.0	7,410.3	8,716.8

Balance sheet

M€	31 Mar 2022	31 Mar 2021	31 Dec 2021
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	-2.9	-44.9	-31.0
Invested non-restricted equity reserve	164.4	164.4	164.4
Retained earnings	3,991.4	3,154.3	4,036.0
Equity attributable to shareholders of the parent company	4,246.8	3,367.7	4,263.3
Total equity	4,246.8	3,367.7	4,263.3
Non-current liabilities
Loans and borrowings	3,508.2	2,863.5	3,234.8
Deferred tax liabilities	992.1	776.5	981.0
Derivatives	16.0	67.5	47.9
Provisions	0.4	0.4	0.4
Other non-current liabilities	5.2	5.0	5.1
Total non-current liabilities	4,521.9	3,712.9	4,269.3
Current liabilities
Loans and borrowings	114.1	170.8	99.7
Derivatives	0.1	0.7	0.3
Current tax liabilities	2.9	1.2	5.5
Trade and other payables	167.3	157.0	78.7
Total current liabilities	284.4	329.7	184.2
Total liabilities	4,806.3	4,042.6	4,453.5
TOTAL EQUITY AND LIABILITIES	9,053.0	7,410.3	8,716.8

Financial key figures

	31 Mar 2022	31 Dec 2021	30 Sep 2021	30 Jun 2021	31 Mar 2021
Equity ratio, %	46.9	49.0	46.2	45.8	45.5
Interest cover	4.0	4.0	4.0	4.0	4.1
Loan to Value (LTV), %	37.4	37.7	41.0	41.0	40.2
Hedging ratio, %	93	92	92	92	90
Average interest rate, % ¹⁾	1.8	1.8	1.8	1.8	1.9
Average loan maturity, years	4.1	4.3	4.5	4.7	4.5
Average interest rate fixing period, years	4.0	4.2	4.4	4.6	4.4

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.