Performance

& Results

2017

Highlights

€149m

€66m

Investments and commitments,

incl. commitment to KRR III

22 %

€72m

Growth in sales (direct portfolio

companies)

Profit after taxes

International capital into Finnish

companies

Investment focus

We operate together and on equal terms with private investors

Venture Capital funds

Later-stage growth funds

Venture Capital

Direct investments

Growth Capital

Direct investments

Industrial Investments

Direct investments

VC & PE market in Finland

• Finnish funds were successful in fund-raising in

2017. New funds were raised in all development

phases.

• Finnish venture capital volumes remained at the

record level of 2016, €250m.

• Investors are showing rising interest in

Finnish healthtech companies.

• International investors are more active than

ever before.

• Chinese investors made many significant

investments and acquisitions in Finland.

• Finnish buyout funds have €1b of raised capital

seeking new investments.

Objectives and results 2017

International capital €72m from our network to

Finnish growth companies

OBJECTIVES RESULTS

We invest in the growth

of Finnish companies

We develop the Finnish

VC & PE market

Our operations are

profitable Profit €66m

Cumulative profits €323m

New investments €149m

7 funds and

22 direct investments

*includes some exceptionally large investment rounds

2015 2016 2017

€66m

€86m

€45m

€165m€149m

€23m

€159m *

€72m

€93m

International capital to Finnish companies

• In 2017, 11 of Tesi’s direct portfolio companies

raised a total of €45m from international

investors. These companies include MariaDB,

BC Platforms and BCB Medical.

• Tesi’s international portfolio funds invested a

total of €27m in nine Finnish companies.

• In addition to capital, international investors

bring valuable expertise and contact networks

to portfolio companies.

Financial result

Net gains from investments€69m consist of realised and unrealised changes in fair value:

• In funds €53m; net gains were boosted by highervaluations and by exits.

• In direct investments €15m; net gains consisted mainly of exits.

• Cumulative profit was €323m at the end of the year.

Consolidated statement of comprehensive

income IFRSEUR thousands 1-12/2017 1-12/2016 Change

Net gains from venture capital and private

equity funds

53 363 27 570 25 792

Net gains from direct investments 15 386 18 060 -2 675

Net gains from investments, total 68 748 45 631 23 117

Net gains from financial securities 18 282 16 962 1 320

Income from fund management 372 447 -75

Other operating income, total 18 654 17 409 1 244

Personnel expenses -4 470 -4 737 267

Depreciation and impairment -228 -139 -89

Other operating expenses -2 519 -2 981 462

Operating profit 80 185 55 184 25 001

Financial income and expenses -129 18 -147

Profit before taxes 80 056 55 202 24 854

Income taxes -14 387 -10 601 -3 785

Profit for financial year 65 669 44 601 21 068

Total comprehensive income for year 65 669 44 601 21 068

Balance sheet

• Balance sheet value of funds€372m has increased by €36m

• Balance sheet value of directinvestments €189M hasremained the same

• Current assets €452m consistmainly of liquid assets (financialsecurities)

Consolidated Balance Sheet IFRS

EUR thousands 31.12.2017 31.12.2016 Change

Venture capital and private equity funds 371 500 335 736 35 764

Direct investments 188 558 189 415 -858

Venture capital and private equity

investments, total

560 058 525 151 34 907

Non-current assets total 568 547 532 909 35 638

Current assets, total 451 774 410 072 41 702

Assets, total 1 020 321 942 981 77 340

Equity

Share capital 438 992 438 992 0

Share premium account 215 855 215 855 0

Retained earnings 257 638 213 037 44 601

Profit for financial year 65 669 44 601 21 068

Equity, total 978 155 912 485 65 669

Liabilities

Non-current liabilities, total 30 578 27 849 2 729

Current liabilities, total 11 588 2 646 8 942

Liabilities, total 42 166 30 495 11 671

Equity and liabilities, total 1 020 321 942 981 77 340

9

Recent investments

9

INVESTMENTS 2017

Commitment in KRR III €60m

Commitments in funds €60m

Direct investments €29m

Venture Capital funds Buyout funds

Venture Capital Growth Industrial investments

10

Recent exits

6.3.2018

RIGHTWARE

Buyer: Thundersoft

(China)

THERMISOL

Buyer: Jackon Group

(Norway)

VISEDO

Buyer: Danfoss

(Denmark)

Examples

Chinese CATL invests in Valmet Automotive

Inventure III raised €110m International investors set sights on Finnish

healthtech

AliBaba Cloud invests €23m in MariaDB Tesi launches €150m fund-of-funds KRR III

Nasdaq Helsinki welcomes Talenom on the

main market

• In 2018, Tesi has given a commitment to the Finnish growth fund Saari I Ky and

made direct investments in Viria and Zervant.

• Tesi’s strategic themes for 2018 are developing the Finnish venture capital and

private equity market, active ownership, corporate responsibility and sustainable

development and renewal.

• Tesi’s focus on fund investments is increasingly on venture capital and

small buyout funds. Tesi will put emphasis on expanding the investor

base of Finnish funds. A number of new teams are in the process of fund-

raising in Finland.

• Tesi will continue to make direct minority investments in growth-seeking

SMEs and industrial investments. The focus in direct investments is on

the Industrial Renewal and International Investors investment

programmes. New focus areas for direct investment are circular economy

and artificial intelligence.

• Tesi will continue its close collaboration with EIF and EIB in channeling EU

funding into Finnish funds and growth companies.

• Excellent returns from previous financial years give Tesi strong resources for

long-term investment operations that promote the growth of Finnish companies.

Going forward

Dare to Grow

www.tesi.fi

https://dtg.tesi.fi

@TesiFII