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Technopls Ventures Ltd. — Interim / Quarterly Report 2010
Oct 22, 2010
7074_rns_2010-10-22_b4a14693-9180-4cbb-92d5-774566da8356.html
Interim / Quarterly Report
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TECHNOPOLIS GROUP INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2010
TECHNOPOLIS GROUP INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2010
TECHNOPOLIS PLC INTERIM REPORT OCTOBER 22, 2010 at 10:55
TECHNOPOLIS GROUP INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2010
Highlights for period 1-9/2010 compared with 2009
- Net sales rose to EUR 58.4 million (EUR 56.7 million)
- EBITDA rose to EUR 31.1 million (EUR 30.0 million)
- Net sales and EBITDA improved by EUR 0.8 million early capital lease repayment
for the period 4-6/2010
- Operating profit rose to EUR 28.6 million (EUR -1.5 million)
including a change of EUR -1.8 million (EUR -31.1 million) in the fair value of
investment properties
- Profit before taxes totaled EUR 21.3 million (EUR -10.8 million)
- The financial occupancy rate was 93.7 % (94.3 %)
- The Group's equity ratio was 38.8 % (38.0 %)
- Earnings per share (undiluted) were EUR 0.24 (EUR -0.14) and diluted EUR 0.24
(EUR -0.14)
Keith Silverang, CEO:
“The business environment in Finland is stable, but there is still intense
competition. On the other hand, the market is clearly recovering in several
communities where we operate. This is also evident in the financial occupancy
rate, which increased by nearly one percent during the quarter to 93.7 % at the
end of the period under review. Organic growth continues in Finland, and
approximately 31,000 gross square meters are under construction in the Helsinki
Metropolitan Area, Kuopio and Tampere.
The commissioning of Pulkovo in St. Petersburg took place in September. The
rental market is gradually recovering in St. Petersburg, which improves the
potential for signing leases at a sufficiently profitable level.
After the end of the reporting period, the establishment of a joint venture in
Tallinn was completed on October 7, 2010.
The Group's direct result and cost-effectiveness were satisfactory. The market
yields affecting the fair value of investment properties continued to slightly
decrease.
The Group continues to benefit from low market interest rates, but we are
preparing for a rate increase.
Business Conditions in Finland and St. Petersburg
The Finnish economy has seen favorable growth during the second quarter.
Employment began to improve in July, and exports have increased even more
rapidly than the exports of the Eurozone's main driver, Germany. It is possible
that the GDP growth estimates for 2010 will be adjusted in the fall. (Source:
The Research Institute of the Finnish Economy, October 8, 2010.)
In the first half of 2010 office space vacancy in the Helsinki metropolitan area
has continued to rise, climbing to 12.8 %. The situation in the office rental
market in growth centers varies by city. (Catella, Market Review, fall 2010.)
Office vacancies rose in nearly all Finnish growth centers in spring 2010, but
remained below 8 % (Catella, Market Review, spring 2010).
In general, the vacancy rate of class A properties in the St. Petersburg office
market is expected to increase towards the end of the year as a result of
increased supply. According to Jones Lang LaSalle, the supply and demand will
gradually balance by the end of 2012. The rents for office premises have
remained stable during the first half of the year. Rents are not expected to
rise significantly during 2011. (Jones Lang LaSalle, St. Petersburg office
market, Q3/2010.)
Operations
On September 30, 2010, Technopolis had two geographic operational segments :
Finland and Russia. The segmentation is based on the Group's existing internal
reporting procedures and the organization of the Group's operations. Technopolis
Ülemiste, a joint venture established in Tallinn on October 7, 2010, will be
reported as a separate operational unit in the financial statements for 2010.
Despite difficult economic conditions, the demand for innovation environments in
Technopolis' areas of operation has remained satisfactory, and the Group's
financial occupancy rate has remained on a satisfactory level, 93.7 % at the end
of the third quarter of 2010 (92.8 % on June 30, 2010, and 94.3 % on September
30, 2009).
Competition remained intense in the communities where Technopolis operates in
Finland during the period under review. However, the company's occupancy rates
are above average in nearly all domestic growth centers.
The Group's net sales for the period under review were EUR 58.4 million (EUR
56.7 million in 2009), an increase of 2.9 %, including compensation of EUR 0.8
million for premature lease termination in the period 4—6/2010. Rental revenues
accounted for 86.2 % (85.4 %) and service revenues for 13.8 % (14.6 %) of sales
excluding the capital lease repayment. Like for like rental growth, that is, the
rental revenue from comparable properties declined 2.5 %, primarily due to
decreasing occupancy rates. Like for like is calculated by comparing the rental
revenues for January through September 2010 to the same period in 2009. To
ensure comparability, the rental revenues from properties commissioned or
acquired during the year are excluded.
The Group's EBITDA was EUR 31.1 million (EUR 30.0 million), an increase of 3.6
%. EBITDA improved partly through compensation of EUR 0.8 million for a capital
lease repayment. The Group's profit before taxes totaled EUR 21.3 million.
The Group's operating profit totaled EUR 28.6 million (EUR -1.5 million). The
increase in operating profit mainly resulted from a change of only -1.8 million
(EUR -31.1 million) in the fair market value of investment properties due to
stabilized market yields. The change in the fair market value of investment
properties has no impact on the Group's net sales, EBITDA or cash flow.
The Group's net financial expenses totaled EUR 7.2 million (EUR 9.3 million).
The Group's profit before taxes totaled EUR 21.3 million (EUR -10.8 million).
The Group started to extend the interest rate fixing period of its loans by
carrying out interest rate swaps with a nominal value of EUR 45.0 million during
the spring of 2010.
The company has presented its direct result as of January 1, 2009, which
provides a more precise illustration of the company's operational financial
performance. The Group's direct result was EUR 17.0 million (EUR 15.6 million),
an increase of 8.5 %. The direct result shows the company's performance for the
financial period, excluding changes in the fair value of investment properties
and financial instruments during the period, as well as any non-recurring items
and tax effects relating to these items.
Total assets were EUR 747.9 million (EUR 691.7 million), an increase of 8.1 %.
The Group's equity ratio at the end of the period was 38.8 % (38.0 %).
The fair market value of the Group's investment properties at the end of the
period was EUR 651.3 million (EUR 596.4 million) and the fair market value of
investment properties under construction was EUR 49.8 million (EUR 40.0
million). The earnings impact of the change in the fair market value of
investment properties was EUR -1.8 million (EUR -31.1 million in January through
September 2009) during the period under review. The change in the fair market
value includes an increase in the value due to a slight decline in market yields
and a change in the value of investment properties and investment properties
under construction. Uncertainties concerning the development of the Russian
market have been taken into account in the fair market value of properties under
construction in Russia.
Net market yields are calculated by taking the average of the upper and lower
ranges of net market yield, as reported by two independent appraisal agencies
for each individual region. On September 30, 2010, the average net yield for
Group properties was 7.97 % (8.02 % on September 30, 2009). The average ten-year
occupancy rate used in the fair value calculation was 95.3 %. The Group has set
a higher target for the financial occupancy rate than this. Over the period
2000-2009 the Group's average occupancy rate was 97.1 %.
The Group's total rentable space at the end of the period was 460,290 square
meters (456,738 square meters on September 30, 2009). The Group's average
financial occupancy rate at the end of the period was 93.7 % (94.3 %). The
financial occupancy rate depicts rental revenues from the properties as a
percentage of the aggregate of the rents for occupied premises and the estimated
market rent for vacant space. The lease stock held by the Group totaled EUR
110.5 million (EUR 122.5 million) at the end of the reporting period. The figure
does not include the lease stock of buildings under construction.
Technopolis is continuously analyzing potential international investment targets
in Europe for future growth. The key criteria are the growth potential of the
innovation environment, sufficient initial scale, achieving rapid positive cash
flow from operations, potential for post-acquisition growth, as well as the
suitability of the targeted properties and customer base for the Technopolis
concept, which combines premises with services.
Major Investments and Development Projects
Projects under construction on September 30, 2010:
| | Area | Gross | EUR | Occupancy | Due for |
| | | sqm | million | rate Sept | completion |
| | | | | 30, 2010 | |
| Pulkovo Phase 1 | St. | 24,100 | 52.3 | 40.2 | 9/2010 |
| (2) | Petersburg | | | | |
| Finn-Medi | Tampere | 14,900 | 29.6 | 90.9 | 11/2011 |
| campus (3) | | | | | |
| Viestikatu | Kuopio | 18,500 | 11.8 | 88.0 | 10/2010 |
| Phase 2 (4) | | | | | |
| Helsinki-Vantaa | HMA | 2,830 | 6.0 | 18.5 | 5/2011 |
| Phase 5, Part 2 | | | | | |
(2) Including plot. Completion indicates commissioning.
(3) 43 parking spaces in the building
(4) 420 parking spaces in a garage
The first phase of Technopolis Pulkovo in St. Petersburg was commissioned by St.
Petersburg's governmental building control agency in September. The
commissioning permit will make it possible to sign the final official leases
with customers once the building is registered. The building is not yet
finished, and it has not been handed over by the contractor. The building will
be gradually taken-up for rental activity during December 2010 and the spring of
2011, after which the project will have an impact on the Group's financial
occupancy rate. The occupancy of the first phase with preliminary lease
agreements now stands at 40.2 %. As of the end of the period under review, a
total of EUR 47.6 million had been committed to the operations in St.
Petersburg.
The market situation in St. Petersburg remains challenging. Negotiations are
underway with several potential customers for a significant amount of space. Now
that the first phase of Technopolis Pulkovo has been commissioned and the office
market is gradually picking up, the potential for signing leases at a
sufficiently profitable level is improving.
Technopolis will build a campus for well-being services and life sciences in the
Finn-Medi area in Tampere. The location will include the Eye Center of the
Pirkanmaa Hospital District, a Patient Hotel for Norlandia Care Oy and a
multi-user office facility for other customers. Approximately 84 % of the
premises have been leased long term to the Eye Center and the Patient Hotel. The
occupancy rate of the campus, which is under construction, is 90.9 %.
Technopolis also has premises under construction in Helsinki-Vantaa and Kuopio.
Both projects are expansions of existing centers.
Technopolis is planning to divest properties that do not suit the innovation
center operations, or are not part of the core business.
Financing
Technopolis is able to finance all of the investments approved by the Board
using its current credit facilities. At the end of the reporting period, funds
available consisted of EUR 188.2 million in untapped credit facilities, and cash
amounting to EUR 4.8 million. Use of available credit limit facilities,
excluding commercial paper, requires collateral arrangements. Of the long-term
unused credit facilities, EUR 60.0 million is credit that has been extended by
the European Investment Bank to Technopolis for future expansion projects in
Finland, and EUR 31.6 million has been extended by the European Bank for
Reconstruction and Development to Technopolis for Technopolis Pulkovo in Russia.
Technopolis has a EUR 90 million domestic commercial-paper program for managing
its short-term liquidity, which allows the company to issue commercial papers
with maturities of less than one year. The value of commercial paper issued by
Technopolis after the end of the reporting period totals EUR 19.1 million.
Furthermore, Technopolis has a EUR 15.0 million revolving credit account with an
overdraft facility, of which EUR 1.7 million was in use at the end of the
period.
Technopolis carried out a directed share issue for a limited number of Finnish
and international institutional investors after mid-May. All 5,700,000 shares
offered were subscribed in the issue. The subscription price was EUR 3.40 per
share, and the issue raised capital totaling approximately EUR 19.4 million.
There were significant financial reasons for executing the issue because its
purpose is to strengthen the company's capital structure, finance investments
according to the company's investment plan, and support the company's growth.
The Group's net financial expenses totaled EUR 7.2 million (EUR 9.3 million).
The Group's interest coverage ratio was 5.3 (3.6). The interest coverage ratio
indicates the relation between EBITDA and accrual-based interest expenses.
The Group's total assets were EUR 747.9 million (EUR 691.7 million), of which
liabilities totaled EUR 459.4 million (EUR 430.7 million). The Group's equity
ratio was 38.8 % (38.0 %). The Group's net gearing was 136.9 % (143.3 %) at the
end of the period. The Group's equity per share was EUR 4.79 (EUR 4.55).
At the end of the period, the Group's interest-bearing liabilities amounted to
EUR 399.7 million (EUR 376.2 million). The average interest rate on
interest-bearing liabilities was 2.18 % (2.72 %) on September 30, 2010. Of
interest-bearing liabilities, 75.0 % (70.8 %) were floating rate loans and 25.0
% (29.2 %) were fixed rate loans at the end of the period. The average
capital-weighted loan period was 9.4 years (10.3 years). During the spring of
2010, the Group has extended the interest rate fixing period of its loans by
carrying out interest rate swaps with a nominal value of EUR 45.0 million.
The Group's loan to value ratio, i.e., the ratio of interest-bearing liabilities
to the fair value of investment properties and properties under construction,
was 56.2 % (58.4 %).
The Group has interest-bearing liabilities totaling EUR 399.7 million, of which EUR 112.2 million include equity ratio related covenants. A decline in the
equity ratio may lead to higher interest rate margins or premature repayment of
these loans. The margins of some loans and bank guarantees may rise as the
equity ratio falls, as shown in the table below. Potential changes in the
margins take effect in accordance with the contractual provisions of each loan.
| Loan (L) or | Margin % | Equity | Equity | Equity | Equity | Other |
| bank | on | ratio | ratio | ratio | ratio | |
| guarantee | Septembe | under | under | under | under 30 | |
| (BG) | r 30, | 38 % | 35 % | 33 % | % | |
| principal, | 2010 | | | | | |
| EUR million | | | | | | |
| 10.0(L) | 0.71 | 0.82 | | 0.97 | 1.22 | |
| 3.67(L) | 0.65 | | | 0.70 | 1.00 | |
| 37.5(L) | 1.50 | | | 1.75 | 2.00 | Margin may |
| | | | | | | be changed |
| | | | | | | or loan |
| | | | | | | terminated |
| | | | | | | if equity |
| | | | | | | ratio is |
| | | | | | | under 30 % |
| 1.0(L) | 0.45 | | | | | Margin may |
| | | | | | | be changed |
| | | | | | | or loan |
| | | | | | | terminated |
| | | | | | | if equity |
| | | | | | | ratio is |
| | | | | | | under 28 % |
| 10.0 (BG) | 0.85 | 0.85 | 1.00 | 1.50 | | |
| 10.0 (BG) | 0.365 | | | 0.40 | 0.60 | |
| 20.0 (BG) | 0.26 | 0.35*) | | | 0.65 | *)Covenant |
| | | | | | | becomes |
| | | | | | | effective |
| | | | | | | 12/8/2013 |
| 20.00 (BG) | 0.9 | 0.9 | 1.0 | 1.5 | | |
Bank guarantees totaling EUR 86.0 million have been given as security for the
EUR 84.3 million in loans granted by the European Investment Bank. EUR 31.0
million of these bank guarantees will expire by the end of 2013 and the plan is
to extend them. The extension of these bank guarantees may result in increased
guarantee margins.
During the 12-month period following the period under review, EUR 53.0 million
of the existing interest-bearing loans will mature.
The financing of Technopolis Pulkovo, phase 1, is arranged through the parent
company's investments in shareholders' equity and with an EBRD loan of EUR 31.6
million.
Organization and Personnel
The CEO of Technopolis is Keith Silverang, MBA. Mr. Silverang has dual U.S. and
Finnish citizenship. He has completed a Bachelor of Arts degree at Boston
University and an MBA at the Helsinki School of Economics. Reijo Tauriainen acts
as Deputy CEO of the company.
A decision was made to change the Technopolis Plc organization, and the
organizational changes took effect after the end of the period under review. As
of October 1, 2010, the Group Management Team will comprise Keith Silverang
(CEO), Reijo Tauriainen (CFO), Satu Eskelinen, Marko Järvinen, Kari Kokkonen,
and Jukka Rauhala.
The Technopolis line organization consists of three units: Finland, Russia, and
New Markets. The Group organization also has matrix support functions for the
Group's real estate development, business services, business development and
support services. The New Markets unit did not generate net sales or operating
profit during the period under review, and its expenses are included in the
expenses of Group administration. Technopolis Ülemiste, a joint venture
established after the end of the period under review in Tallinn on October 7,
2010, will be reported as a separate operational unit in the financial
statements for 2010.
During the reporting period, the Group employed an average of 134 (152) people.
Facilities operations employed 65 (61) people, Business Services 35 (34) people
and Development Services 34 (57) people. At the end of the reporting period, the
Group's personnel totaled 136 (149).
Technopolis Plc adheres to the Finnish Corporate Governance Code for listed
companies, issued by the Securities Market Association and effective as of
October 1, 2010. The Corporate Governance Statement dated January 29, 2010, is
publicly available on the company's website at
http://www.technopolis.fi/for_investors/corporate_governance.
Group Structure
The Technopolis Group comprises the parent company, Technopolis Plc, which has
operations in Espoo, Helsinki, Jyväskylä, Kuopio, Lappeenranta, Oulu, Tampere
and Vantaa, and its subsidiaries, Innopoli Ltd and Kiinteistö Oy Innopoli II,
both wholly owned and located in Espoo, as well as other subsidiaries.
Technopolis has two companies in St. Petersburg, Russia: Technopolis Neudorf LLC
and Technopolis St. Petersburg LLC, both wholly owned by Technopolis. After the
end of the reporting period, Technopolis established an Estonian subsidiary,
Technopolis Baltic Holding AS (wholly owned by Technopolis), which controls the
holding in Technopolis Ülemiste AS (51 %).
The parent company has non-controlling interests in the affiliated companies
Technocenter Kempele Oy (48.5 %), Kiinteistö Oy Bioteknia (28.5 %), Iin
Micropolis Oy (25.7 %), Jyväskylä Innovation Ltd (24 %), Kuopio Innovation Ltd
(24 %), and Lappeenranta Innovation Ltd (20 %). Technopolis Plc has a 13 %
holding in Oulu Innovation Ltd.
The Group also includes Technopolis Ventures Ltd in Espoo, wholly owned by
Innopoli Ltd. Technopolis Group has a 35 % holding n Otaniemi Development Ltd.
Annual General Meeting
On March 26, 2010, the Annual General Meeting of Shareholders (AGM) of
Technopolis Plc adopted the Group and parent company's financial statements for
fiscal 2009 and released the company management and Board from liability for the
period. The AGM approved a dividend of EUR 0.15 as proposed by the Board. The
dividends were paid on April 9, 2010.
The AGM decided to amend a section in the Articles of Association that concerns
the terms of Board members by specifying that the term of a member of the Board
ends when the next Annual General Meeting following the election has concluded.
The AGM also decided to amend the section concerning the notice of the AGM so
that it should be distributed no later than three weeks before the AGM but no
later than nine days before the record date of the AGM. Furthermore, the notice
of the AGM may be alternatively delivered by publishing it on the company's
website.
Other decisions by the AGM are covered in the company's previous Interim Report,
published on April 29, 2010, and a release published on March 26, 2010,
concerning the decisions of the AGM.
Board Authorizations
The agenda of the AGM of 2010 did not contain any share related authorizations
to the Board.
The AGM of 2009 authorized the Board to decide on the acquisition of its own
shares. The authorization expired on September 26, 2010.
The AGM of 2009 also authorized the Board of Directors to decide on a share
issue and on granting options and other special rights entitling to shares as
referred to in Chapter 10, Section 1 of the Limited Liability Companies Act as
follows: Pursuant to this authorization, the maximum number of shares to be
issued will be 11,400,000, equaling approximately 19.88 % of the company's
shares. The issuance of shares and of special rights entitling to shares may be
carried out in deviation from the shareholders' pre-emptive rights (directed
issue). The authorization supersedes the authorizations granted by the General
Meeting of November 29, 2007 and the Annual General Meeting of March 27, 2008
regarding a share issue and granting of special rights entitling to shares. The
authorization expires on March 26, 2012, and as of the situation on 30.09.2010,
the maximum number of shares yet to be issued pursuant to the authorization is
5,700,000, equaling approximately 9.0 % of the company's shares. For issuing a
number of shares exceeding the above, the company would require a new
authorization from the AGM.
The AGM of 2009 decided to adopt a performance share incentive plan for key
personnel in the Technopolis Group. The total reward payable in the system
corresponds to a maximum value of approximately 800,000 Technopolis Plc's shares
(including the portion payable in cash). The nominal dilution effect of these
shares is 1.3 %.
Stock-related Events
On May 6, 2010, the Finnish Financial Supervisory Authority approved Technopolis
Plc's registration document, which complies with the Finnish Securities Market
Act and contains information on the company, its business operations and its
financial condition. The registration document is valid for 12 months following
its publication.
Technopolis carried out a directed share issue for a limited number of Finnish
and international institutional investors after the middle of May. The share
issue was implemented by virtue of a Board authorization of the Annual General
Meeting of March 26, 2009. All 5,700,000 shares offered were subscribed in the
share issue, which accounts for approximately 9.9 % of all the Company's shares
and voting rights immediately prior to the share issue. The subscription price
was EUR 3.40 per share, and the issue gathered gross capital totaling
approximately EUR 19.4 million. Trading in the shares together with the other
shares in the Company started on the Official List of NASDAQ OMX Helsinki Ltd as
of May 24, 2010.
On June 2, 2010, Technopolis issued 339,703 new shares pursuant to the
subscriptions made by 2005A options. The subscription price when subscribed for
pursuant to option right was EUR 3.266 per share. Trading in the shares together
with the other shares in the Company started on the Official List of NASDAQ OMX
Helsinki Ltd as of June 3, 2010.
The new shares issued pursuant to the share issue and the subscriptions made by
2005A options have been registered in the trade register and the company
shareholders' register. They entitle the holder to a dividend for fiscal 2010
and to other shareholder rights.
The number of the company's shares after subscription is 63,385,044 shares.
Share capital remained unchanged, totaling EUR 96,913,626.29, because the
subscription price of the new shares has been registered in the company's
unrestricted equity reserve. The shares are in a single series, and each share
entitles the holder to one vote at the Annual General Meeting.
Technopolis 2007A Stock Options were listed on the trading list of the OMX
Nordic Exchange on May 3, 2010. The subscription price of 2007A stock options is
EUR 7.119 per share. The subscription period begins on May 1, 2010, and will end
on April 30, 2012. The total number of 2007A stock options is 500,000. The
maximum number of new shares to be subscribed by the options is 521,500, with a
nominal dilution effect of 0.8 %. The details of the 2007A stock options are
provided in a stock exchange release published on April 30, 2010.
Disclosures of Changes in Holdings
On June 6, 2010, BNP Paribas Investment Partners announced that the proportion
of Technopolis Plc's share capital and votes held by the mutual funds managed by
BNP Paribas Investment Partners exceeded one-tenth (10 %) as a result of a share
transaction carried out on June 1, 2010. The proportion of Technopolis Plc's
share capital and votes indirectly controlled by BNP Paribas Investment Partners
was 6,597,296 and 10.41 % respectively.
On May 26, 2010, OP-Pohjola Group Central Cooperative announced that the
proportion of Technopolis Plc's share capital and votes held by OP-Pohjola Group
and its related parties as well as OP-Pohjola Group affiliates and the mutual
funds managed by them, had exceeded one-twentieth (5 %) as a result of a share
transaction carried out on May 19, 2010. The proportion of Technopolis Plc's
share capital and votes indirectly controlled by OP-Pohjola Group was 3,912,443
shares and 6.206 % respectively.
On May 20, 2010, Henderson Global Investors Limited notified that its indirect
holding in Technopolis shares and votes had gone below one-twentieth (5 %) as a
result of a transaction completed on September 25, 2010. The indirect holding of
Henderson Global Investors Limited in Technopolis share capital and votes was
2,800,049 and 4.88 % respectively.
On May 20, 2010, the City of Oulu notified that its direct holding in
Technopolis' share capital and votes would go below one-twentieth (5 %) as a
result of the share issue. As of May 21, 2010, the direct holding of the City of
Oulu in Technopolis' share capital and votes was 3,062,925 and 4.86 %
respectively.
Varma Mutual Pension Insurance Company announced on February 17, 2010, that its
direct holding in Technopolis' share capital and its number of votes has
exceeded one tenth (10 %) as a result of a purchase of shares that was completed
on February 16, 2010. Following this transaction, the direct holding of Varma in
Technopolis' share capital and its number of votes was 6,856,980 shares and
11.96 %.
Post-fiscal events
Technopolis Plc's subsidiary Technopolis Baltic Holding As and the Tallinn-based
Smart City Group As and its subsidiary Ülemiste City As created a joint venture
and carried out a share purchase on October 7, 2010.
Technopolis' investment in the new company, Technopolis Ülemiste, was EUR 9.43
million. In addition, an earn-out payment totaling EUR 0.5 million will be paid
if the joint venture achieves certain targets over the next two years.
Technopolis Group has a 51 % holding in Technopolis Ülemiste, while the
remaining 49 % interest is held by Smart City Group subsidiary Ülemiste City As.
Technopolis Ülemiste has a property portfolio comprising approximately 70,000
square meters, with approximately 46,000 square meters of modern office
buildings. The company also owns building rights totaling approximately 150,000
square meters of office space. The enterprise value of Technopolis Ülemiste is
EUR 63.5 million with loans totaling approximately EUR 43 million. Technopolis
Ülemiste's pro forma full-year net sales are expected to total EUR 4.5 million
and EBITDA EUR 3.6 million. The pro forma figures are calculated based on the
lease stock transferred to the company.
The establishment of Technopolis Ülemiste has been previously covered in stock
exchange releases published on March 26, 2010, and July 17, 2010, in connection
with the company's Interim Report for January through June 2010.
Evaluation of Operational Risks and Uncertainties
Technopolis' most significant risks are primarily those associated with
financing and customers, as well as international operations and business risks.
The objective of interest rate risk management is to mitigate the negative
impact of market rate fluctuations on the Group's earnings, financial position
and cash flow. If necessary, the company uses forwards, interest rate swaps and
interest rate options to hedge interest rate risks. The company's policy
concerning interest rate risks also aims to diversify the interest rate risk of
loan contracts over different loan periods based on the prevailing market
situation and the interest rate forecast created by the company.
Indicative of the structure of Technopolis' loan portfolio at the end of the
period is the equation that a one percentage point change in the money market
rates would change interest rate costs by EUR 2.3 million per annum.
Because of the interest rate risk associated with loans, a policy of
diversifying interest bases is pursued. On September 30, 2010, 15.7 % of
interest-bearing liabilities were pegged to the under 3-month Euribor rate and
59.3 % were pegged to the 3-12 month Euribor rate. Of the interest-bearing
liabilities, 25.0 % were fixed-rate loans with maturities of 13 to 60 months.
The objective of refinancing risk management is to ensure that the Group's loan
portfolio is sufficiently diversified with regard to repayment schedules and
financing instruments. The average capital-weighted outstanding loan period was
9.4 years. In order to manage financing risk, Technopolis draws upon the
resources of a wide range of financers and a variety of financing instruments,
and maintains a sufficient degree of solvency.
Extended uncertainty in the financial markets may adversely affect the
availability of growth financing and refinancing and their margins in the
future.
The differences between Russian and Finnish legislation and administrative
procedures may create risks. If the Pulkovo premises cannot be leased as
planned, the Pulkovo technology center will pose a financial risk for the Group.
Once completed, the Pulkovo technology center will account for approximately 5 %
of the fair value of the Group's entire investment property portfolio. The
subsidiary established on October 7, 2010, in Estonia is also included in the
fair market value of investment properties.
Fluctuations in the exchange rates between the Russian ruble and the euro may
have an effect on the company's financial standing and operations.
Ruble-denominated transactions are recorded at the exchange rate of the
transaction date. Any translation differences are entered in the income
statement under other operating expenses or finance income and expenses
depending on the nature of the transaction.
Fluctuations in the general economic environment may have an adverse effect on
the company's clients and hence on the Group's business operations.
Customer risk management aims to minimize the negative impact of potential
changes in the customers' financial position on the company's business and
financial performance. Customer risk management focuses on having a profound
understanding of the customer's business and active monitoring of customer
information. Customer risks are diversified by acquiring customers from all
technology sectors, knowledge-intensive operations, and from the public sector.
As part of client risk management, Technopolis leases include rental security
arrangements.
Geographically, the Group's property portfolio is diversified between the Oulu
region, the Helsinki Metropolitan Area, Jyväskylä, Kuopio, Lappeenranta,
Tampere, and St. Petersburg in Russia. No single customer accounts for more than
8.5 % of the Group's net sales. The Group has a total of approximately 1,190
customers across a wide range of sectors.
The company's leases fall into two categories: fixed-term and open-ended. The
company aims to apply both lease types depending on the market situation, the
property in question and the sector in which the internal customer operates.
At the end of the period under review, open-ended leases in the lease portfolio
that could be terminated and renegotiated within the next 12 months covered
approximately 195,512 (183,052 on September 30, 2009) square meters of allocated
space, equaling 47.2 % (44.7 % on September 30, 2009) of the weighted area in
the entire property portfolio. The termination notice for these agreements is
broken down as shown in the table below.
| | September 30, 2010 | September 30, 2009 |
| Notice period | Allocated | % of lease | Allocated | % of lease |
| months | sq m | stock | sq m | stock |
| 0 - 3 | 14,566 | 3.5 | 9,047 | 2.2 |
| 3 - 6 | 44,829 | 10.8 | 49,175 | 12.0 |
| 6 - 9 | 100,119 | 24.2 | 96,155 | 23.5 |
| 9 - 12 | 35,998 | 8.7 | 28,675 | 7.0 |
| Total | 195,512 | 47.2 | 183,052 | 44.7 |
The average lease term was 19 (23) months at the end of the period. The figure
does not include the lease stock of properties under construction.
Declining financial occupancy rates may decrease rental and service revenue and
earnings, and reduce the fair value of investment properties and, thus, the
equity ratio. The current lease structure allows customers to flexibly adjust
the space they need as their business needs change. Although the flexibility of
the lease structure may pose a risk to the Group, it is an essential element of
Technopolis' service concept. The company has solid and long-term experience in
this business model over a wide variety of economic cycles.
In new construction projects, Technopolis focuses on quality and the management
of the property's entire lifecycle. In the design phase, consideration is given
to the property's maintenance and repair requirements in order to implement
environmentally sustainable solutions for energy consumption, adaptability of
premises and recycling potential. When purchasing properties, Technopolis
carries out standard property and environmental audits before committing to the
transaction. All properties are covered by full value insurance.
Changes in the market yields may have a significant impact on the company's
financial performance through the fair value of investment properties. As the
yields increase, the fair value of properties decreases. Conversely, as the
yields decrease, the fair value of properties increases. Such changes either
decrease or increase the Group's operating profit. Changes in the market yields
do not have any direct impact on the company's net sales, EBITDA, or cash flow,
but a negative change in the value of investment properties may decrease the
company's equity ratio and, as a result of this, covenants of the leases may be
triggered. In that case, the change in value has an impact on the cash flow and
result for the period.
Future Outlook
The Group's Management estimates that the net sales and EBITDA will grow by 2-4
% in 2010. The management estimates that the financial occupancy rates in
Finland at the end of the year will be at least on the same level as in
September 2010.
In accordance with its strategy, Technopolis aims to operate in the best
knowledge-intensive cities in Finland, Russia and two or three other countries
by 2015. The Group aims to increase net sales by an annual average of 10 %. The
goal is that 25 % of the net sales will be generated outside of Finland by 2015.
The aim is to generate this growth through both organic growth and acquisitions.
The Group's minimum equity ratio target is 35 %.
The Group's financial performance depends of the development of the overall
business environment, customer operations, as well as the market yields from the
financial and real estate markets. Developments in these areas and resulting
changes in the occupancy rate, use of services, financing costs, the fair value
of properties and the rent levels of premises can have an impact on the Group's
sales and earnings.
October 22, 2010
TECHNOPOLIS PLC
Board of Directors
Keith Silverang
CEO
For further information, please contact:
Keith Silverang, tel. +358 40 566 7785
A pdf-presentation of the interim report is available at the company's website
at www.technopolis.fi/for_investors/presentations.
Technopolis provides an online bulletin service that you can join by visiting
the company's website at
http://www.technopolis.fi/for_investors/releases_service. Individuals who sign
up with the service will receive the company's bulletins electronically.
The accounting policies applied in the interim report and the formulas for
calculating key indicators are the same as in the 2009 annual report. The
interim report has been prepared in accordance with the IFRS recognition and
valuation principles; the IAS 34 requirements have also been complied with.
On September 30, 2010, Technopolis had two operational segments based on
geographical units: Finland and Russia. The segment division presented in this
interim report is based on the Group's existing internal reporting procedures
and the organization of the Group's operations.
The figures are unaudited.
Technopolis Group:
| STATEMENT OF | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| COMPREHENSIVE INCOME | | | | | |
| Currency unit: EUR | 2010 | 2009 | 2010 | 2009 | 2009 |
| million | | | | | |
| Net sales | 19.16 | 18.58 | 58.36 | 56.74 | 76.40 |
| Other operating income | 0.25 | 0.45 | 0.84 | 1.51 | 2.43 |
| Other operating expenses | -8.91 | -8.73 | -28.09 | -28.21 | -38.86 |
| Change in fair value of | -2.48 | -2.56 | -1.79 | -31.15 | -37.13 |
| investment properties | | | | | |
| Depreciation | -0.31 | -0.13 | -0.74 | -0.39 | -0.52 |
| Operating profit/loss | 7.71 | 7.62 | 28.58 | -1.50 | 2.31 |
| Finance income and | -2.23 | -3.04 | -7.25 | -9.28 | -11.76 |
| expenses | | | | | |
| Result before taxes | 5.48 | 4.57 | 21.33 | -10.78 | -9.45 |
| Income taxes | -1.13 | -1.42 | -6.79 | 2.56 | 1.95 |
| Net result for the | 4.35 | 3.15 | 14.54 | -8.23 | -7.50 |
| period | | | | | |
| Other comprehensive | | | | | |
| income items | | | | | |
| Available-for-sale | 0.02 | 0.03 | 0.03 | 0.06 | 0.08 |
| financial assets | | | | | |
| Taxes related to other | -0.01 | -0.01 | -0.01 | -0.02 | -0.02 |
| comprehensive income | | | | | |
| items | | | | | |
| Other comprehensive | 0.02 | 0.02 | 0.02 | 0.05 | 0.06 |
| income items after taxes | | | | | |
| for the period | | | | | |
| Comprehensive income for | 4.37 | 3.18 | 14.56 | -8.18 | -7.44 |
| the period, total | | | | | |
| Distribution of profit | | | | | |
| for the period: | | | | | |
| To parent company | 4.35 | 3.17 | 14.54 | -8.18 | -7.44 |
| shareholders | | | | | |
| To non-controlling | 0.00 | -0.02 | 0.00 | -0.05 | -0.05 |
| shareholders | | | | | |
| | 4.35 | 3.15 | 14.54 | -8.23 | -7.50 |
| Distribution of | | | | | |
| comprehensive income for | | | | | |
| the period: | | | | | |
| To parent company | 4.37 | 3.17 | 14.56 | -8.16 | -7.38 |
| shareholders | | | | | |
| To non-controlling | 0.00 | 0.01 | 0.00 | -0.02 | -0.05 |
| shareholders | | | | | |
| | 4.37 | 3.18 | 14.56 | -8.18 | -7.44 |
| Earnings per share based on result of flowing to parent company |
| shareholders: |
| Earnings/share, basic (EUR) | 0.07 | 0.06 | 0.24 | -0.14 | -0.13 |
| Earnings/share, adjusted for | 0.07 | 0.06 | 0.24 | -0.14 | -0.13 |
| dilutive effect (EUR) | | | | | |
| STATEMENT OF FINANCIAL POSITION, ASSETS |
| Currency unit: EUR million | 9/30/2010 | 9/30/2009 | 12/31/2009 |
| Non-current assets | | | |
| Intangible assets | 4.07 | 2.03 | 2.81 |
| Tangible assets | 62.94 | 50.28 | 62.79 |
| Investment property | 651.32 | 596.40 | 596.73 |
| Investments | 11.72 | 25.90 | 25.61 |
| Deferred tax assets | 3.79 | 2.46 | 2.81 |
| Non-current assets | 733.83 | 677.07 | 690.75 |
| Current assets | 14.10 | 14.63 | 15.34 |
| Assets, total | 747.93 | 691.70 | 706.09 |
| Currency unit: EUR million | 9/30/2010 | 9/30/2009 | 12/31/2009 |
| Shareholders' equity | | | |
| Share capital | 96.91 | 96.91 | 96.91 |
| Premium fund | 18.55 | 18.55 | 18.55 |
| Other funds | 84.22 | 63.93 | 63.94 |
| Other shareholders' equity | 0.46 | 0.43 | 0.65 |
| Retained earnings | 73.81 | 89.21 | 89.21 |
| Net result for the period | 14.54 | -8.18 | -7.44 |
| Parent company's shareholders' | 288.50 | 260.86 | 261.83 |
| interests | | | |
| Non-controlling interests | 0.01 | 0.12 | 0.01 |
| Shareholders' equity, total | 288.51 | 260.98 | 261.84 |
| Liabilities | | | |
| Non-current liabilities | | | |
| Interest-bearing liabilities | 346.72 | 349.95 | 360.67 |
| Non-interest-bearing liabilities | 1.17 | 1.28 | 1.25 |
| Deferred tax liabilities | 39.30 | 32.75 | 32.62 |
| Non-current liabilities, total | 387.20 | 383.98 | 394.55 |
| Current liabilities | | | |
| Interest-bearing liabilities | 53.01 | 26.21 | 28.03 |
| Non-interest-bearing liabilities | 19.22 | 20.53 | 21.67 |
| Current liabilities, total | 72.22 | 46.74 | 49.70 |
| Liabilities, total | 459.42 | 430.72 | 444.25 |
| Shareholders' equity and | 747.93 | 691.70 | 706.09 |
| liabilities, total | | | |
| STATEMENT OF CASH FLOWS | 1-9/ | 1-9/ | 1-12/ |
| Currency unit: EUR million | 2010 | 2009 | 2009 |
| Cash flows from operating activities | | | |
| Net result for the period | 14.54 | -8.23 | -7.50 |
| Adjustments: | | | |
| Change in fair value of investment | 1.79 | 31.15 | 37.13 |
| properties | | | |
| Depreciation | 0.74 | 0.39 | 0.52 |
| Share in affiliate profits | 0.01 | -0.01 | -0.01 |
| Other adjustments for non-cash | 0.55 | 0.44 | 0.67 |
| transactions | | | |
| Financial income and expenses | 7.23 | 9.29 | 11.77 |
| Taxes | 6.79 | -2.56 | -1.95 |
| Increase / decrease in working capital | 2.34 | 2.89 | 1.85 |
| Interests received | 0.24 | 0.38 | 0.57 |
| Dividends received | 0.01 | 0.01 | 0.01 |
| Interests paid and fees | -5.30 | -8.79 | -10.54 |
| Other financial items in operating | -2.56 | -2.41 | -1.74 |
| activities | | | |
| Taxes paid | -4.70 | -1.68 | -1.79 |
| Net cash provided by operating | 21.69 | 20.87 | 28.99 |
| activities | | | |
| Cash flows from investing activities | | | |
| Investments in other securities | -0.40 | -0.02 | -0.02 |
| Investments in investment properties | -40.03 | -44.93 | -62.96 |
| Investments in tangible and intangible | -2.85 | -0.22 | -1.05 |
| assets | | | |
| Repayments of loan receivables | 3.14 | 0.49 | 1.06 |
| Gains from disposals of other | 0.01 | 0.00 | 0.01 |
| investments | | | |
| Acquisition of subsidiaries | -2.38 | -0.10 | -0.21 |
| Net cash used in investing activities | -42.51 | -44.78 | -63.17 |
| Cash flows from financing activities | | | |
| Increase in long-term loans | 17.50 | 42.00 | 58.41 |
| Decrease in long-term loans | -27.44 | -12.12 | -15.98 |
| Dividends paid | -8.60 | -6.88 | -6.88 |
| Paid share issue | 20.49 | | |
| Change in short-term loans | 19.13 | -4.00 | -4.00 |
| Net cash provided by financing | 21.09 | 19.01 | 31.55 |
| activities | | | |
| Net increase/decrease in cash assets | 0.27 | -4.91 | -2.63 |
| Cash and cash equivalents at | 4.52 | 7.15 | 7.15 |
| period-start | | | |
| Cash and cash equivalents at period-end | 4.79 | 2.24 | 4.52 |
| STATEMENT OF CHANGES | | | | | |
| IN EQUITY | | | | | |
| Currency | Share | Premium | Other | Retained | Non-contro | Sharehol |
| unit: EUR | capital | fund | funds | earnings | lling | ders' |
| million | | | | | shareholde | equity |
| | | | | | rs | |
| EQUITY Dec | 96.91 | 18.55 | 63.82 | 96.16 | 0.26 | 275.70 |
| 31, 2008 | | | | | | |
| Share | | | | | | |
| capital | | | | | | |
| increase | | | | | | |
| Directed | | | | | | |
| share issue | | | | | | |
| Dividend | | | | -6.88 | | -6.88 |
| distribution | | | | | | |
| Comprehensiv | | | 0.05 | -8.18 | -0.05 | -8.18 |
| e income for | | | | | | |
| the period | | | | | | |
| Other | | | 0.06 | 0.37 | -0.10 | 0.34 |
| changes | | | | | | |
| EQUITY | 96.91 | 18.55 | 63.93 | 81.47 | 0.12 | 260.98 |
| September, | | | | | | |
| 30, 2009 | | | | | | |
| EQUITY Dec | 96.91 | 18.55 | 63.94 | 82.42 | 0.01 | 261.84 |
| 31, 2009 | | | | | | |
| New shares | | | 20.19 | | | 20.19 |
| to issue in | | | | | | |
| deviation | | | | | | |
| Dividend | | | | -8.60 | | -8.60 |
| distribution | | | | | | |
| Comprehensiv | | | 0.02 | 14.54 | 0.00 | 14.56 |
| e income for | | | | | | |
| the period | | | | | | |
| Other | | | 0.06 | 0.45 | | 0.52 |
| changes | | | | | | |
| EQUITY | 96.91 | 18.55 | 84.22 | 88.81 | 0.01 | 288.51 |
| September | | | | | | |
| 30, 2010 | | | | | | |
Financial Information by Segment
The Group's net sales or EBITDA do not include inter-segment items. Items after
the EBITDA, such as depreciation, financing items and taxes, are not presented
in the segment information because they are not allocated to segments.
| SEGMENT INFORMATION | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| Currency unit: EUR | 2010 | 2009 | 2010 | 2009 | 2009 |
| million | | | | | |
| Net sales | | | | | |
| Finland | 19.23 | 18.50 | 58.11 | 56.54 | 76.13 |
| Russia | -0.05 | 0.10 | 0.29 | 0.24 | 0.34 |
| Unallocated and | -0.02 | -0.01 | -0.04 | -0.05 | -0.06 |
| eliminations | | | | | |
| Total | 19.16 | 18.58 | 58.36 | 56.74 | 76.40 |
| EBITDA | | | | | |
| Finland | 10.95 | 11.26 | 31.67 | 33.27 | 43.81 |
| Russia | -0.23 | -0.07 | -0.70 | -0.35 | -0.43 |
| Unallocated and | -0.23 | -0.89 | 0.14 | -2.89 | -3.41 |
| eliminations | | | | | |
| Total | 10.50 | 10.30 | 31.11 | 30.03 | 39.97 |
| Assets | | | | | |
| Finland | | | 742.35 | 684.22 | 691.46 |
| Russia | | | 47.56 | 32.85 | 38.41 |
| Eliminations | | | -41.98 | -25.37 | -23.78 |
| Total | | | 747.93 | 691.70 | 706.09 |
Direct and Indirect Result
Technopolis presents its official financial statements by applying the IFRS
standards. The statement of comprehensive income includes a number of items
unrelated to the company's actual business operations. Therefore, the company
presents its direct result, which better reflects its real result.
The direct result presents the company's financial result for the period
excluding the change in the fair value of investment properties, the change in
the fair value of financial instruments and any non-recurring items, such as
gains and losses on disposals. As the company has interest rate and currency
swaps that do not satisfy the IFRS criteria for hedge accounting, the changes in
the fair value of these financial instruments are recognized in the statement of
comprehensive income. Additionally, the statement of comprehensive income
showing the direct result presents the related taxes and deferred tax assets and
liabilities.
Items excluded from the direct result and their tax effects are presented in the
statement of income showing the indirect result. Earnings per share have been
calculated both from the direct and indirect results in accordance with the
instructions issued by the European Public Real Estate Association EPRA. The
direct and indirect result and the earnings per share calculated from them are
consistent with the company's financial result and earnings per share for the
period.
| Technopolis Group | | | | | |
| DIRECT RESULT | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| Currency unit: EUR | 2010 | 2009 | 2010 | 2009 | 2009 |
| million | | | | | |
| Net sales | 19.16 | 18.58 | 57.52 | 56.74 | 76.40 |
| Other operating income | 0.24 | 0.37 | 0.75 | 1.41 | 2.24 |
| Other operating expenses | -8.91 | -8.73 | -28.09 | -28.21 | -38.86 |
| Depreciation | -0.31 | -0.13 | -0.74 | -0.39 | -0.52 |
| Operating profit/loss | 10.18 | 10.09 | 29.44 | 29.54 | 39.26 |
| Finance income and | -2.34 | -2.92 | -6.17 | -8.84 | -9.75 |
| expenses, total | | | | | |
| Result before taxes | 7.85 | 7.17 | 23.27 | 20.70 | 29.51 |
| Taxes for direct result | -1.34 | -1.64 | -6.30 | -5.10 | -7.91 |
| items | | | | | |
| Non-controlling | | 0.02 | 0.00 | 0.05 | 0.05 |
| interests | | | | | |
| Direct result for the | 6.51 | 5.55 | 16.97 | 15.64 | 21.66 |
| period | | | | | |
| INDIRECT RESULT | | | | | |
| Non-recurring items | 0.01 | 0.08 | 0.93 | 0.10 | 0.18 |
| Change in fair value of | -2.48 | -2.56 | -1.79 | -31.15 | -37.13 |
| investment properties | | | | | |
| Operating profit/loss | -2.47 | -2.47 | -0.86 | -31.05 | -36.95 |
| Change in fair value of | 0.11 | -0.12 | -1.08 | -0.44 | -2.01 |
| financial instruments | | | | | |
| Result before taxes | -2.36 | -2.59 | -1.94 | -31.48 | -38.96 |
| Taxes for indirect | 0.21 | 0.22 | -0.49 | 7.66 | 9.86 |
| result items | | | | | |
| Indirect result for the | -2.16 | -2.38 | -2.44 | -23.82 | -29.10 |
| period | | | | | |
| Result for the period to | 4.35 | 3.17 | 14.54 | -8.18 | -7.44 |
| the parent company | | | | | |
| shareholders, total | | | | | |
| Earnings per share, | | | | | |
| diluted *) | | | | | |
| From direct result | 0.11 | 0.10 | 0.28 | 0.27 | 0.38 |
| From indirect result | -0.04 | -0.04 | -0.04 | -0.42 | -0.51 |
| From net result for the | 0.07 | 0.06 | 0.24 | -0.14 | -0.13 |
| period | | | | | |
| *) Earnings per share | | | | | |
| calculated according to | | | | | |
| EPRA's instructions. | | | | | |
| KEY INDICATORS | 1-9/ | 1-9/ | 1-12/ |
| | 2010 | 2009 | 2009 |
| Change in net sales, % | 2.9 | 7.0 | 5.3 |
| Operating profit/loss / net | 49.0 | -2.7 | 3.0 |
| sales, % | | | |
| Interest coverage ratio | 5.3 | 3.6 | 3.8 |
| Equity ratio, % | 38.8 | 38.0 | 37.3 |
| Loan to value, % | 56.2 | 58.4 | 59.1 |
| Group company personnel during | 134 | 152 | 152 |
| the period, average | | | |
| Gross expenditure on assets, | 58 248 | 45 839 | 66 029 |
| EUR 1,000 | | | |
| Net rental revenue of investment | 7.7 | 7.9 | 7.6 |
| properties, % 2) | | | |
| Financial occupancy rate, % | 93.7 | 94.3 | 94.4 |
| Earnings/share | | | |
| basic, EUR | 0.24 | -0.14 | -0.13 |
| diluted, EUR | 0.24 | -0.14 | -0.13 |
| Equity/share, EUR | 4.79 | 4.55 | 4.57 |
| Average issue-adjusted number of | | | |
| shares | | | |
| basic | 60 250 705 | 57 345 341 | 57 345 341 |
| diluted | 60 383 248 | 57 345 341 | 57 345 341 |
| CONTINGENT LIABILITIES | | | |
| Currency unit: EUR million | 9/30/2010 | 9/30/2009 | 12/31/2009 |
| Pledges and guarantees on own | | | |
| debt | | | |
| Mortgages of properties | 352.70 | 345.3 | 353.90 |
| Book value of pledged | 157.90 | 161.3 | 162.10 |
| securities | | | |
| Other guarantee liabilities | 12.90 | 12.9 | 12.70 |
| Collateral given on behalf of | 0.50 | 0.5 | 0.50 |
| associates | | | |
| Leasing liabilities, machinery | 3.40 | 2.3 | 2.21 |
| and equipment | | | |
| Project liabilities | 0.15 | 0.15 | 0.15 |
| Interest rate and currency | | | |
| swaps | | | |
| Nominal values | 92.10 | 139.8 | 107.70 |
| Fair values | -1.66 | 0.39 | -0.99 |
1) Other operating income consists of operating subsidies received for
development services; an equal amount is recorded under operating expenses for
development services.
2) The figure does not include properties commissioned and acquired during the
fiscal year.
Distribution:
NASDAQ OMX Helsinki
Main news media
www.technopolis.fi
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