Technopls Ventures Ltd. — Earnings Release 2013

Feb 14, 2014

Technopolis Group Statements Report for 2013

Technopolis Group Statements Report for 2013

TECHNOPOLIS PLC FINANCIAL STATEMENTS RELEASE February 14, 2014 at 8:00 a.m.

Technopolis Group Statements Report for 2013

A Year of Strong Growth for Technopolis

• Net sales rose to EUR 126.3 (107.3) million, up 17.7%
• EBITDA rose to EUR 64.1 (55.8) million, up 15.0%
• The financial occupancy rate was 93.6% (95.3%)
• Earnings per share were EUR 0.30 (0.33), including changes in fair value and
  unrealized exchange rate losses
• Direct result (EPRA) rose to EUR 40.5 (29.9) million, up 35.6%
• Direct result per share (EPRA) was EUR 0.47 (0.38)
• Net asset value per share (EPRA) was EUR 4.90 (5.12)
• The Board of Directors proposes a dividend of EUR 0.10 per share

The company estimates that its net sales for 2014 will grow by 27% - 32% and
EBITDA by 35% ­ 40% compared to the previous year.

During 2013, the company increased its rentable area by acquiring 165,600 sqm
of space, with another 77,900 sqm were under construction. Non-recurring
expenses of EUR 2.3 million related to acquisitions and additional purchase
prices of previous acquisitions reduced EBITDA. The net profit for the period
was EUR 31.6 (27.0) million. Fair value changes of EUR -17.6 (-5.7) million and
unrealized exchange rate losses of EUR -5.7 (0.6) million reduced operating
earnings while a change in Finnish tax rates increased the net profit for the
period by EUR 7.0 million.

The EPRA-based (European Public Real Estate Association) direct result was EUR
40.5 (29.9) million, an increase of 35.6%. The change was mainly due to the
increase in EBITDA. The EPRA-based direct result does not include unrealized
exchange rate gains or losses or fair value changes.

                                    10-12/  10-12/  1-12/  1-12/

Key Indicators 2013 2012 2013 2012

Net sales, EUR million 34.7 28.7 126.3 107.3
EBITDA, EUR million 16.9 15.4 64.1 55.7
Operating profit, EUR million 11.6 15.2 43.9 48.0
Net result for the period, EUR million 14.7 8.7 28.8 25.8
Earnings/share, undiluted, EUR 0.16 0.11 0.30 0.33
Earnings/share, diluted, EUR 0.16 0.11 0.30 0.33
Cash flow from operations/share, EUR 0.53 0.50
Equity ratio, % 40.2 36.2
Equity/share, EUR 4.62 4.46

Earnings and balance sheet figures per share have been adjusted for the share
issue.

EPRA-based 10-12/ 10-12/ 1-12/ 1-12/
Key Indicators 2013 2012 2013 2012

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Direct result, EUR million 11.2 10.0 40.5 29.9
Direct result/share, diluted, EUR 0.13 0.13 0.47 0.38
Net asset value/share, EUR 4.90 5.12
Net rental yield, % 7.6 7.8
Financial occupancy rate, % 93.6 95.3

Keith Silverang, CEO:

“We have worked consistently to develop Technopolis into an international real
estate company while targeting strong profitability and a healthy capital
structure. We have not yet achieved our targeted scale, but 2014 took us much
closer to our target, and we therefore have good reason to be satisfied with
the company's performance.

In 2013 we invested roughly a half billion euros in new campuses at home andabroad. The spurt started in February when we acquired the Peltola campus in
Oulu, followed by the Vilnius acquisition in May, and then Falcon in Espoo and
finally Oslo. Each acquisition offered an attractive risk-return ratio and an
excellent fit for the Technopolis concept and real estate portfolio. And every
one of them bring opportunities to generate short and long term yield premiums
by boosting occupancy, service revenues and raising the value of the campuses.
For instance, we added more than 20% to Peltola's occupancy in first 10 months
after the acquisition. In Vilnius we completed and filled a new building while
integrating the campus. We were able to partner with powerful Norwegian and
Finnish entities in establishing our new Oslo joint venture. And we funded it
all with a balance sheet strengthening 75 million euro hybrid bond issue and a
100 million euro rights issue, as well as debt arrangements with solid Nordic
banking partners.

In the mean time it was business as usual in operations, with every business
unit working hard to boost occupancy, customer satisfaction and earnings. We
completed challenging construction projects in Tallinn, Jyväskylä and Kuopio,
and our Pulkovo 2 project in St. Petersburg proceeding as planned.

Technopolis ended the year with 17.7% revenue growth, 15% EBITDA growth and
financial occupancy increased from 92% in Q3 to 93.6% at the year-end. The
company's equity ratio is over 40% and total shareholder return was
approximately 30% for the year. These figures speak for themselves.

Technopolis will focus in 2014 on digesting acquisitions, managing integration
effectively, building occupancy and improving profitability. Given the
acquisitions at the end of 2013 the company's net sales and EBITDA will grow
robustly in 2014. International revenues are approaching our 2016 target of 50
million euros and there are still plenty of profitable growth opportunities in
neighboring markets.

The company still has a lot of potential. We will continue to work very hard to
improve the scalability of our concept and to boost productivity and
efficiency. We will continue to streamline our portfolio, which will mean not
only new campuses but also the divestiture of properties and campuses that are
no longer good fit with concept. Our goal is to be able to achieve excellent
customer satisfaction, high occupancy and continuous profitable growth on every
campus.

We are cautiously optimistic about the future. We're finally starting to get
some help from gradually improving macroeconomic conditions. We have an
authentically pan-Nordic-Baltic campus network. We have a great service concept
that differentiates us from competitors. Technopolis has an excellent platform
from which to continue its journey as a profitable international growth
company.”

Full version of Technopolis Plc's financial statements 2013 attached.

Additional information:
Keith Silverang
CEO
tel. +358 40 566 7785

Distribution:
NASDAQ OMX Helsinki, main news media, www.technopolis.fi

About Technopolis:
Technopolis provides the best addresses for companies to operate and succeed in
five countries in the Nordic-Baltic region. The company develops, owns and
operates a chain of 21 smart business parks that combine services with flexible
and modern office space. The company's core value is to continuously exceed
customer expectations by providing outstanding solutions to 1,500 companies and
their 32,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The
Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.

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