technopolis presentation q3 2016

January-September 2016 ResultsOctober 28, 2016

28.10.2016 2

Q3 Highlights

124 million euro rights issue was a success

Net sales & EBITDA were up 3.5% year-on-year, excluding FX & non-recurring items

Q3 occupancy 92.7% as expected

Service income grew by 10.1%, penetration at 12.5%

Cash flow from operations/ share EUR 0.43 (0.39)

Equity ratio & LTV improving due to rights issue

28.10.2016 3

Unit Occupancy

93,5%90,6%

97,0% 97,2%

92,0%96,2%

99,9% 100,0% 99,8%

77,0%

93,0%

84,4%

92,1%93,5% 94,2%

92,8%

98,3%100,0% 98,9% 100,0%

88,0%

70%

75%

80%

85%

90%

95%

100%

Q3-2015 Q3-2016

Group Q3/1692.7%

28.10.2016 4

Service Business Growth 10%

70,3 80,7 93,0 111,1 144,8 150,3 111,4

11,212,1

14,2

15,2

16,9 20,3

15,9

13,7%

13,0%

13,2%12,0%

10,4%

11,9%

12,5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50

100

150

200

2010 2011 2012 2013 2014 2015 1-9/2016

Rental income Service income Services of net sales

EUR million

28.10.2016 5

Financing

1-9/2016 2015 2014

Interest bearing debt, EUR million 991.2 864.8 841.9

Fixed rate, % 55.9 71.3 60.0

Average interest rate, % * 2.30 2.60 2.43

Capital weighted loan maturity, years

5.1 5.9 6.1

Interest cover ratio, % 4.7 4.3 4.8

Loan to value, % 58.7 58.8 59.7

Equity ratio, % 39.5 39.3 38.5

Cash and equivalents, EUR million 98.7 39.4 28.3* Excluding the hybrid loan

28.10.2016 6

The Rights Issue

Shares were offered in proportion to existing holding, subscription price EUR 2.40 per share

Oversubscribed by 66%

Net proceeds EUR 124.3 million

Total number of shares increased to 158,793,662

Full impact on solvency indicators in Q1/2017

Equity ratio now 39.5% and LTV 58.7%. Both will continue to improve as excess liquidity is used to pay down debt.

28.10.2016 7

How We Will Use Rights Issue Proceeds

Strengthen balance sheet after Gårda acquisition

Buy out Oslo minority shareholding

Ruoholahti 3 & Lõõtsa 12 projects launched

Organic growth project pipeline

Future campus acquisitions

28.10.2016 8

On September 30, 2016, the projects in progress totaled EUR 112.9 million

Area Name m² EUR million

Stabilized yield, % *

Financial OCR/ Pre -OCR, %

Completion

Tallinn Lõõtsa 5 9,200 17.0 8.8 100 1/2016

Tampere Yliopist. 3&4 11,900 40.5 7.2 79.7 7/2016

Vilnius Delta 21,600 79.7 9.8 79.7 12/2016

Helsinki Ruoholahti 3 10,300 33.2 7.0 35.7 07/2018

Organic Growth Projects 1-9/2016

Projects in grey are not completed as per Sept 30, 2016 i.e. financial occupancy is pre-let rate.* Stabilized yield = estimated net operating income / cost

28.10.2016 9

Organic Growth Project Pipeline

Tallinn campus expansion (Lõõtsa 12) to be launched soon. Investment of EUR 19.7 million together with Mainor

Organic expansion opportunities:

HMAEspoo Innopoli (35,000 m2)

Helsinki Ruoholahti (21,400 m2)

Vantaa Aviapolis (33,200 m2)

Tampere CBD (22,800 m2)

Kuopio (40,800 m2)

Jyväskylä (15,000 m2)

Vilnius

Lõõtsa 12

1028.10.2016

Future Expansion Strategy

Our territory is the Nordic-Baltic region

Focus is on value creationOptimal strategic fit

Best upside potential

Healthy risk-adjusted yield

Divestitures in Finland to continue

28.10.2016 11

Guidance for 2016 Unchanged

Technopolis expects its net sales and EBITDA in 2016 to remain at the same level (+/- 5%) as in 2015.

Yliopistonrinne Campus in Tampere

www.technopolis.fi Find us on: facebook.com/TechnopolisPlc

twitter.com/TechnopolisPlc

Thank you

Appendices: Additional Data

28.10.2016 14

Fair Value Changes 1-6/2016

EUR million MarketYield

Related

OccupancyAssumption Modernization

Other Changes *

Projects in

Progress

Total

Finland 13.7 -0.9 -9.1 -7.2 1.5 -2.0

Baltic Rim 3.7 -1.1 -0.2 -2.0 3.9 4.3

Scandinavia 5.0 0.0 -2.2 -4.4 0.0 -1.6

Total 22.4 -2.0 -11.5 -13.6 5.4 0.7

* Contract changes EUR 6.9 million. A write-down in Oulu EUR 5.0 million. In Norway, some revenues were allocated to services and were thus removed from fair value calculation, EUR 1.7 million.

28.10.2016 15

Group

1-9/2016 1-9/2015 2015

Rentable space, m² * 778,200** 730,400 740,400**

Rent, €/m²/mo. avg.* 17.15 17.06 16.99

Financial occupancy rate, %* 92.7** 94.5 94.6**

Net rental income, EUR million 111.4 114.4 150.3

Net sales, EUR million 127.3 128.9 170.6

EBITDA, EUR million 70.7 72.9 93.0

Market yield requirement, avg., % * 7.39 7.68 7.73

Fair value of investment properties, EUR million *

1,652.9 1,410.8 1,426.0

* At the end of the period.** Under renovation Q3/2016: 10,000 m², 12/2015: 16,700 m²

28.10.2016 16

Finland1-9/2016 1-9/2015 2015

Rentable space, m² * 530,000** 524,400 526,900**

Rent, €/m²/mo. avg.* 17.34 17.12 17.02

Financial occupancy rate, % * 90.7** 92.9 92.9**

Net rental income, EUR million 77.3 82.5 107.4

Net sales, EUR million 90.6 95.1 125.0

EBITDA, EUR million 50.2 55.8 69.0

Market yield requirement, avg., % * 7.7 7.7 7.8

Fair value of investment properties, EUR million * 1,183.0 1,002.5 984.8

* At the end of the period.** 9/2016: 7,200 m² under renovation. 12/2015: 16,700 m² under renovation.

28.10.2016 17

Baltic Rim

1-9/2016 1-9/2015 2015

Rentable space, m² * 148,300 141,150 147,000

Rent, €/m²/mo. avg. * 14.42 14.32 15.15

Financial occupancy rate, % * 98.9 99.9 99.5

Net rental income, EUR million 19.6 18.6 25.1

Net sales, EUR million 21.6 19.7 26.8

EBITDA, EUR million 12.0 10.0 14.2

Market yield requirement, avg., % * 8.7 8.7 8.7

Fair value of investment properties, EUR million * 261.8 229.2 246.7* At the end of the period.

28.10.2016 18

Scandinavia1-9/2016 1-9/2015 2015

Rentable space, m² * 99,900** 64,800 66,500**

Rent, €/m²/mo. avg. * 19.52 22.38 21.50

Financial occupancy rate, % * 94.8** 97.0 97.1**

Net rental income, EUR million

14.3 13.4 17.8

Net sales, EUR million 15.2 14.1 18.8

EBITDA, EUR million 8.5 7.1 9.9

Market yield requirement, avg., % *

5.5 6.2 6.1

Fair value of investment properties, EUR million * 334.0 190.5 194.4* At the end of the period.** 9/2016: 2,800 m2 under renovation, 12/2015: None.

28.10.2016 19

Cash Flow from Operations Increased by 15%

Cash flow from operations / share EUR 0.43 (0.39)

The improvement was due to

decreased working capital

improved net result for the period

other financial items

taxes

28.10.2016 20

Stable Occupancy Over Time

80%

85%

90%

95%

100%

Q4

-20

06

Q1

-20

07

Q2

-20

07

Q3

-20

07

Q4

-20

07

Q1

-20

08

Q2

-20

08

Q3

-20

08

Q4

-20

08

Q1

-20

09

Q2

-20

09

Q3

-20

09

Q4

-20

09

Q1

-20

10

Q2

-20

10

Q3

-20

10

Q4

-20

10

Q1

-20

11

Q2

-20

11

Q3

-20

11

Q4

-20

11

Q1

-20

12

Q2

-20

12

Q3

-20

12

Q4

-20

12

Q1

-20

13

Q2

-20

13

Q3

-20

13

Q4

-20

13

Q1

-20

14

Q2

-20

14

Q3

-20

14

Q4

-20

14

Q1

-20

15

Q2

-20

15

Q3

-20

15

Q4

-20

15

Q1

-20

16

Q2

-20

16

Q3

-20

16

10 year average 94.4%

Q3/1692.7%

28.10.2016 21

Leases

Lease stock, % of space Maturity in years

Sept 30, 2016

2015 2014

<1 18 22 17

1-3 22 20 23

3-5 17 15 12

>5 15 19 22

Open-end leases 28 24 26

Av. lease term in months 35 36 39

Lease stock, EUR million 430.0 429.7 455.9

The ten largest customers let approximately 18.1 % of rented space and accounted for 16.5% of rental income. The single largest customer accounted for 4.0% of rented space and 2.2% of rental income.

28.10.2016 22

2015-2020 Strategic Financial Targets

Average net sales and EBITDA growth 10% p.a.

Service penetration 15% by 2020 for like-for-like real estate

5.5% return on capital employed p.a.

Equity ratio above 35% over the cycle

2328.10.2016

Investment Criteria

Sufficient scale

Good quality assets

Flexibility & adaptability

Location & connections

Service infrastructure potential

Customer mix potential

Competitive valuation with attractive risk-adjusted return

2428.10.2016

EPRA EPS

0,340,38

0,47

0,53 0,52

0,0

0,1

0,2

0,3

0,4

0,5

0,6

2011 2012 2013 2014 2015

EPRA EPS, EUR

28.10.2016 25

Technopolis Investment Story

Technopolis concept brings both higher yields & lower operational risk

Proven track record of building & sustaining high occupancy

Consistently high rental yield relative to cost of capital

Upside to build service revenue & earnings

Effective end-to-end control of the customer experience

Well positioned to exploit trend toward shared working life