SATO Oyj - Other information disclosed according to the rules of the Exchange

SATO renews its financial reporting

SATO Corporation, Other information disclosed according to the rules of the
Exchange, 12th April 2017 at 1:30 p.m.


SATO Corporation will alter to its financial reporting as of the first quarter
in year 2017. The alterations are due to changes in the SATO's strategy and
business. The information given in the new reporting model is considered to
better reflect the current strategy and the recent development of the business.

The reporting is aligned with SATO's strategic decision to give up the
production of owner-occupied properties and focus on the rental business. Sale
of new apartments and land stock is not a part of the group's core business and
their share of the group's income has decreased remarkably. Sales income from
new apartments, sales income from land stock sales and the corresponding
expenses which has earlier been presented as a part of the net sales are
reclassified into other operating income in the new reporting model.

Due to the alterations, the net sales of the group will be only comprised of the
rental income. The corresponding expenses, i.e. property maintenance expenses
and ground rents, will be disclosed as one item in property maintenance
expenses.

Accordingly, the group's unbuilt land stock reserve and properties under
construction that are not classified as investment property will be included in
the Group's balance sheet in the tangible assets. The reporting changes have no
impact on the shareholders' equity and liabilities.

The first Interim report based on the new reporting structure for the period
January-March 2017 will be published on 27 April 2017.

Comparison data of the new financial reporting for the year 2016 is presented
below.

 Consolidated Income statement, IFRS



 MEUR                                     Q1/2016 Q2/2016 Q3/2016 Q4/2016  2016
-------------------------------------------------------------------------------
 Net Sales                                   61,1    65,4    68,3    67,9 262,7
-------------------------------------------------------------------------------
 Property maintenance expenses              -22,8   -22,2   -23,6   -27,0 -95,7
-------------------------------------------------------------------------------
 Net operating income                        38,2    43,2    44,7    40,9 167,1


-------------------------------------------------------------------------------
 Changes in value of investment
 properties, realised                         0,7     0,0    -0,2     0,3   0,7
-------------------------------------------------------------------------------
 Changes in value of investment
 properties, unrealised                      39,8    23,2    38,5    22,7 124,3
-------------------------------------------------------------------------------
 Sales, marketing and administrative
 expenses                                    -7,2    -8,3    -6,7    -7,8 -30,0
-------------------------------------------------------------------------------
 Other operating income                       2,0     1,8     0,4     3,6   7,7
-------------------------------------------------------------------------------
 Other operating expenses                    -0,5    -0,9    -0,7    -0,5  -2,6
-------------------------------------------------------------------------------


 Operating profit                            72,9    58,9    76,1    59,3 267,2


-------------------------------------------------------------------------------
 Financial income                             0,1     0,2     0,2     0,2   0,6
-------------------------------------------------------------------------------
 Financial expenses                          -9,7   -13,5   -12,3   -12,9 -48,4
-------------------------------------------------------------------------------
                                             -9,6   -13,3   -12,1   -12,7 -47,8



 Profit before tax                           63,3    45,6    64,0    46,5 219,4


-------------------------------------------------------------------------------
 Income tax expenses                        -12,9    -9,5   -12,8    -9,6 -44,8
-------------------------------------------------------------------------------
 Profit for the period                       50,4    36,1    51,2    36,9 174,7





 Assets



 MEUR                                Q1/2016 Q2/2016 Q3/2016 Q4/2016   2016
---------------------------------------------------------------------------
 ASSETS

 Non-current assets
---------------------------------------------------------------------------
 Investment property                  2823,4  3248,6  3335,7  3383,2 3383,2
---------------------------------------------------------------------------
 Tangible assets                       106,4   109,8   102,8   105,1  105,1
---------------------------------------------------------------------------
 Intangible assets                       1,9     2,1     1,7     1,6    1,6
---------------------------------------------------------------------------
 Investments in associated companies     0,0     0,0     0,0     0,0    0,0
---------------------------------------------------------------------------
 Available-for-sale financial assets     1,7     1,7     1,7     1,7    1,7
---------------------------------------------------------------------------
 Non-current receivables                12,5    12,3    12,2    13,4   13,4
---------------------------------------------------------------------------
 Deferred tax assets                    16,9    18,2    18,3    16,1   16,1
---------------------------------------------------------------------------
 Total                                2962,7  3392,7  3472,3  3521,1 3521,1



 Current assets

 Account and other receivables          16,5    18,6    24,4    18,0   18,0
---------------------------------------------------------------------------
 Deferred tax assets                     6,3     7,4     8,5     4,9    4,9
---------------------------------------------------------------------------
 Cash and cash equivalents             301,6    79,7    35,4    18,3   18,3
---------------------------------------------------------------------------
 Total                                 324,3   105,7    68,3    41,2   41,2


---------------------------------------------------------------------------
 TOTAL ASSETS                         3287,1  3498,3  3540,6  3562,2 3562,2
---------------------------------------------------------------------------


For more information please contact:

Saku Sipola, President & CEO, tel. +358 201 34 4001
Markku Honkasalo, CFO, tel. +358 201 34 4226


www.sato.fi/en

SATO is one of Finland's leading rental housing providers. SATO's aim is to
offer comprehensive alternatives in rental housing and an excellent customer
experience. SATO holds roughly 25,300 apartments in Finland's largest growth
centres and in St Petersburg.

In our operations, we promote sustainable development and initiative-taking, and
work in open interaction with our stakeholders to create added value. We operate
profitably and with a long-term view. We increase the value of our housing
property through investments, divestments and repair work.

SATO Group's net sales in 2016 were €262,7 million, operating profit €267.2
million and profit before taxes €219.4 million. SATO's investment properties
have a value of roughly €3.4 billion.





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