Press Releases

Technopolis Puts in Excellent Operational Performance

TECHNOPOLIS PLC              PRESS RELEASE February 10, 2015 at 8:45 a.m

Technopolis Puts in Excellent Operational Performance

Technopolis put in a very strong operational performance in 2014, but valuation items disturbed its IFRS result. Net sales increased from EUR 126.3 million to EUR 161.7 million, up 28%. EBITDA increased from EUR 64.1 million to EUR 87.2 million, up 35.9%. Costs increased only by 16.9% during the year, boosting the EBITDA margin from 50.7% to 53.9%. The financial occupancy rate increased 1.1%, from 93.6% to 94.7%.

The company’s EPRA-based (European Public Real Estate Association) direct result, which highlights the company’s operational and cash flow-based earnings, increased from EUR 0.47 in 2013 to EUR 0.53 per share, which was an all-time high for the company.

At the same time, the IFRS-based net profit decreased to EUR -0.15 per share, while in 2013 it had been EUR 0.30 per share. The IFRS net profit decreased due to the fair value of properties decreasing by EUR 40.5 million and unrealized exchange rate losses of EUR 22.1 million.. The calculated losses decreased the net result by EUR 0.61.

The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.15 per share be paid. In 2014, the company paid EUR 0.10 per share in dividends. The company also purchased 700,000 shares from the market as part of a publically announced share buyback program launched in November 2014 covering one million treasury shares..

Technopolis’ CEO Keith Silverang:

“Technopolis performed well despite the challenges of 2014, and recorded healthy operational earnings. We saw a significant increase in our net sales and EBITDA, and our occupancy rate rose. Our EPRA-based net result, which only contains operational items, grew 38.1%. What’s more, our EBITDA margin rose from 50.7% in the last year to 53.9% thanks to effective cost control.

The decline in our IFRS-based earnings resulted from a EUR 40.5 million decrease in the fair value of investment properties and EUR 22.1 million in unrealized exchange rate losses, coming primarily from the devaluation of the Russian ruble. Russian business operations account for 4% of the company’s balance sheet.

The equity ratio fell by 1.7% year-on-year, primarily due to weaker currencies. Despite the fall, our equity ratio was 38.5%, remaining well above the 35% target set by the Board.

In 2014, we focused on operational efficiency enhancement and on the integration of campuses acquired in 2013. We were able to raise the occupancy rate of the Peltola campus in Oulu from 54% at the point of acquisition to 90%. In Vilnius, a high occupancy rate and our customers’ expansion requirements offer excellent opportunities to invest in further expansion this year. In Oslo, we did more than 12,000m² in new agreements, including 5,400m² in new leases. The Falcon Business Park acquired in Espoo, Finland, was renamed Innopoli 3 and successfully integrated into the Otaniemi Campus.

The Technopolis concept is effective and replicable, as demonstrated by successful integration and higher EBITDA margins. It has enabled us to achieve strong financial occupancy rates in Finland, and robust growth outside the country.

We will continue to invest in international growth. That said, all new investments will still need to meet strict investment criteria, and we will continue to focus sharply on profitability.”

Technopolis Plc

Keith Silverang
CEO
Tel. +358 40 566 7785

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 20 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 1,700 companies and their 47,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.