Sponda Capital Markets Day

21 September 2010

Lauri Ratia

Chairman of the Board

2

Property portfolio focused on prime

locations in the Helsinki Metropolitan Area

Investment properties by location

(excl. Property development & Funds)

Sponda owns a diversified property portfolio with a wide range of space solutions

Helsinki CBD and Ruoholahti areas

HMA

Turku

Tampere

Oulu

Moscow

St Petersburg

EUR 2,798.0 million

84 %

2 %

7 %

1 %

6 %

1 %

3

Strategy

• Sponda’s strategic goal is to seek growth and profitability

through customer-focused operations and active property

development, by purchasing property, and through operating

real estate funds in Finland and Russia.

• Due to economic downturn Sponda adjusted its strategy to

moderate growth and profitability. Growth, mainly property

development, was financed by selling some of the existing

property portfolio.

• Sponda reviews its strategy regularly so that it can adjust its

operations to prevailing market conditions.

4

Strategy implemented in 2006-20092006

- First investments in Russia and into property funds.

- Sponda bought Kapiteeli Plc, rights offering for EUR 250 million completed to

fund the acquisition.

2007

- Sale of EUR 400 million property portfolio.

- Number of property development projects started.

2008

- Property divestments started in order to strengthen balance sheet

- All property development projects were completed at the end of the year

2009

- Strategy adjusted to prevailing market conditions.

- Property development activities accelerated at the end of the year.

- Rights offering of EUR 200 million completed to stregthen the balance sheet.

2010

- Property divestments continue to finance the development projects.

5

Activities in H2/2010

• Sponda won the tax case which secures Sponda’s balance

sheet position

• Improving cash flow by– Improving prime rental levels

– Further improving vacancy

– Active portfolio management

• Priority is in cash flow and improving balance sheet but, in the

long-term Sponda will look to– Accelerate property development activities on demand.

– Continue to follow both Finnish and Russian markets with a view to invest.

Sponda Capital Markets Day

21 September 2010

Kari Inkinen

President and CEO

7

Agenda

• Finnish property market performance

• Our performance

• Property development

• Summary and prospects

8

The Finnish property market

Source: Catella Property

• Transaction volume is still very low

(€0.6 bn), even compared to 2009.

• The office vacancy in the market has

further increased in H1 2010...

• ...however, the amount of new space

that has come to the market is very

limited.

• Market rents have stabilised in prime

markets and in new, modern buildings.

In the secondary market the rents are

still flexible.

Property transaction volume

0

1

2

3

4

5

6

7

bn

. eu

ro

Foreign Domestic

0,5

1,0

1,4

2,42,32,3

3,4

2,0

3,7

6,0

5,5

2,7

3,2

1,6

0,6

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Current office developments in the HMA- in total approx. 60 000 m²

Polaris Business Park Castor

City Center office

building

Falcon Business Park Gentti

Skanska Finland

HQ-building

Quartetto Business Campus H-

building

Keilaranta 1

extension

Alberga Business Park 1st phase

Technopolis 5th phase part 2

Source: Catella Property

Plaza Business Park Pilke

Avia Line 2nd phase

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Prime yields in HMA

Source: Catella Property

11Source: Catella Property

Rental levels in HMA

12

Vacancy rate in the HMA

Source: Catella Property

13

Vacancy in office premises in selected areas

Source: Catella Property

14

Agenda

• Finnish property market

• Our performance

• Property development

• Summary and prospects

15

Sponda Q2/2010: Performance highlights

4-6/10 4-6/09 1-6/10 1-6/09 1-12/09

Total revenue, M€* 58.3 60.6 115.9 119.8 237.2

Net Operating Income, M€* 43.0 43.6 83.4 87.2 175.8

Operating profit, M€ 56.7 27.9 93.0 (49.9) (13.3)

Cash flow from

operations/share, €

0.11 0.19 0.19 0.37 0.45

Earnings/share, €** 0.11 0.04 0.15 (0.48) (0.40)

NAV/share, € 3.55 3.54 3.54

EPRA NAV/share, € 4.19 4.20 4.18

Economic occupancy rate, % 87.3 86.8 88.4

*) The company’s share of real estate fund profits in the income statement are presented on the change in fair value line

instead of under total revenue which has altered the company’s total revenue. The share of the profit in January-

June was EUR 2.9 million and in April – June EUR 1.4 million. The figures for comparison have been adjusted accordingly.

**) The figure includes the impact of the interest on the hybrid bond.

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Back to business

• Our priorities will continue to be in property management and

leasing operations:– Securing strong and solid cash flow

– Increasing cash flow with completion of property development in 2011

– Further reducing office and logistics vacancy and

– Completing current property development project as well as looking for new projects.

• Active portfolio management will ensure solid cash flow:– Long-term target is to sell down logistics portfolio with the exception of identified prime

locations

– Share of shopping centres will increase

– Funds business will grow

– Investments into Russia will continue should the market be favourable

• The maintenance costs will be kept below the market average.

• Continue to benefit from low interest levels but also continue to

increase hedging.

• Renewal part of expiring debt in 2011 and 2012.

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• Interest-bearing debt EUR 1,597.7 million

• Unused financing limits EUR 375 million

Loan maturities 30 June 2010

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How has Sponda’s portfolio performed in

the market?

Office

and

Retail

Logistics Shopping

Centres

Russia

Occupancy rate was up by

1.2 % -points since last

quarter.

Manufacturing and exports

are recovering resulting in

increase in demand for

logistics space.

Occupancy rate stayed at

high level with a small

increase.

Occupancy was up by 4

%-points, 91.5 %, since

the previous quarter.

Lease expiries and new

leases are at the same

level q-on-q in 2010*.

Average rents have

decrased 5 % q-on-q in

2010*.

Rents on average have

increased approx. 3 % q-on-

q in 2010*

Cash flow has increased

5 % q-on-q in 2010.

Property values have

bottomed out and yields in

prime properties will start

to decline in 2010.

Yields have leveled out,

improved market

conditions should turn the

values as well.

Values of shopping centres

in prime locations have

started to slowly increase.

Yields from peak to

trough fell over 20 % but

have now stabilised,

especially in Moscow.

* The figure refers to average rental levels in new agreements compared with rental levels in expired leases in

Sponda’s portfolio.

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Economic vacancy rate 2007 - 2010

Office & Retail vacancy restated from 31 Dec 2008

0

5

10

15

20

25

30

Office & Retail 12.3 %

Shopping Centres 3.3 %

Logistics 24.1 %

Russia 8.5 %

Total property portfolio 12.7 %

HMA market office vacancy 12.9 %

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Agenda

• Finnish property market performance

• Our performance

• Property development

• Summary and prospects

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Property development

• Expertise in property development:- First-class, sustainable buildings with low-energy consumption;

- Long-term partner and property owner;

- Sizeable landbank enables tailored construction;

- Experienced project managers who ensure that projects are completed on time and

on budget.

• The value of development portfolio was EUR 230.2 million – Land sites: EUR 88.1 million;

– Development projects: EUR 142.1 million;

– Development investments include mainly investments to City-Center project and

production plant in Vantaa.

• Development projects can be started once the required level of pre-

letting, over 50 %, has been achieved.

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Property development projects

Project Existing sqm Additional

sqm

€ to be invested Profit on

investment

Use

City-Center 41 000 office

and retail

15 000, of

which 4 200

office and

rest retail

EUR 125

million

Target is to

value City-

Center project

in Q4/2010

Retail

Hakkila 12 000 office 22 000

logistics

EUR 40 million At least EUR 6

million

Production/ren

ovation of

office space

New projects

“ready-to-go”

150 000 > EUR 300

million

Office, retail

Development

pipeline

350 000 At least 15 %

on top of the

development

cost

Office, retail,

logistics

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Hakkila, Vantaa

• New production plant for

22 000 m² being built

• In addition, Sponda will

lease 12 000 m² of office

and warehouse space in

the adjacent office building.

• Construction started,

completion estimated end

2010-beginning 2011.

• Total investment EUR 40 million.

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City-Center, Helsinki CBD

Inner Courtyard with new office building

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Agenda

• Finnish property market performance

• Our performance

• Property development

• Summary and prospects

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Activities in H2/2010

• Making use of signs of improvement in office and logistics

markets– Improve prime rental levels

– Further improve vacancy

• Accelerating property development activities

• Continue to look at disposing of non-strategic assets– In 2009, Sponda sold properties for EUR 40 million and booked a capital gain of

EUR 4.3 million.

– In H1/2010, Sponda sold properties for EUR 20 million and booked a capital gain

of EUR 10 million.

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Prospects and financial targets

Prospects

• Sponda estimates that the positive development in occupancy rates, which

started in Q2 2010, will continue for the rest of 2010. This assessment is based

on the lease agreements that the company knows are expiring and on the

forecast growth in Finland’s economy in 2010.

• The net operating income in 2010 is estimated to be lower than that in 2009.

The reasons for this decline are the strategic sale of property and the fall in

occupancy rates that began in 2009 and continued in the first quarter of 2010.

Financial targets

• Long-term equity ratio target is 40 % .

• Dividend policy is to pay approx. 50 % of the operational cash earnings per share, taking into account of the economic situation and company’s development needs.

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IR contact:

Pia Arrhenius

Senior Vice President, Corporate

Communications and IR

Tel: +358-20-431 3454