SRV Yhtiöt Oyj — Earnings Release 2020

Jan 13, 2021

SRV Group Plc specifies its estimate of operating profit for 2020 based on the certain changes in the value in the Investments segment’s balance sheet items

SRV Group Plc specifies its estimate of operating profit for 2020 based on the certain changes in the value in the Investments segment’s balance sheet items

SRV GROUP PLC     INSIDE INFORMATION     13 JANUARY 2021       19:00 EET

SRV Group Plc specifies its estimate of operating profit for 2020 based on the
certain changes in the value in the Investments segment’s balance sheet items

SRV Group Plc specifies its estimate of operating profit for 2020. The estimate
is impacted by the change in the value in certain balance sheet items in the
Investment segment. Previously the company estimated as part of its 2020 outlook
that the operating profit for 2020 was expected to improve compared to 2019 and
to be positive. The company now specifies its expected operating profit for 2020
and estimates the operating profit for 2020 to be EUR 3-6 million. In other
respects, the company's previous outlook for 2020 remains unchanged.

The operating profit for 2020 will be affected by changes in the value of the
Investment segment's balance sheet items, which will have a total negative
impact of approximately EUR 12 million. The changes consist of a decrease in
value of the additional sales price of the REDI shopping centre, a change in the
classification of the Pearl Plaza shopping centre and a revision of the value of
two other assets.

The company sold its holding in the REDI shopping centre in February 2020 and
recorded a EUR 13.5 million sales price receivable related to the possible
additional future sales price of EUR 50 million agreed at the time in connection
with the transaction. Due to the updated cash flow based forecast of the
shopping centre REDI, SRV will record the additional sales price, which will
have a negative impact of approximately EUR 13 million on operating profit in
2020.

The company's holding in the Pearl Plaza shopping centre was designated as an
asset held for sale. The second wave of coronavirus pandemic was the main reason
for the sales negotiations ending without success. The classification of the
asset is returned as a share in associated companies and joint ventures, which
will have a positive impact of approximately EUR 6 million on the 2020 operating
profit. In line with its strategy, SRV will continue to develop the property
with the intention of selling its holding when the market situation allows.

In addition, the company will make adjustments to the value of the other two
assets in the Investment segment so that the adjustments will have a total
negative impact of approximately EUR 5 million on the 2020 operating profit.

The combined effect of the revisions to the value of balance sheet items on the
operating profit for 2020 is EUR 12 million negative, and the company therefore
estimates the operating profit for the year to be EUR 3-6 million. Without
adjustments to the value of balance sheet items, the operating profit for 2020
would have been estimated at EUR 15-18 million.

SRV Group Plc will publish its financial statements bulletin for 2020 on
Thursday, 4 February 2021. The company observes a silent period before
publishing its financial reports. SRV Group Plc is now in a silent period, which
will continue until the publication of the company's 2020 financial statements
bulletin on Thursday, 4 February 2021.

For further information, please contact:

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Jarkko Rantala, CFO, tel. +358 (0)40 6741949, jarkko.rantala@srv.fi

Distribution:
Nasdaq Helsinki
Media
www.srv.fi

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SRV in brief

SRV is developer and innovator in the construction industry. We want to offer
the best customer experience as a constructor of urban city centres, while also
being the most attractive employer in the industry. Our genuine cooperation and
enthusiasm for our work comes across in every encounter. Sustainability is
reflected in all our activities.

Established in 1987, we are a publicly listed company since 2007 in Helsinki
Nasdaq stock exchange that operates in growth centres in Finland and Russia. Our
revenue in 2019 was EUR 1,061 million. Over 1,000 people work for us and we
employ a network of almost 4,000 subcontractors in our projects.

SRV – Building for life