Technopolis - Interim report (Q1 and Q3)

Technopolis Group Interim Report January 1 - March 31, 2014

TECHNOPOLIS PLC          INTERIM REPORT        May 7, 2014 at 8:00 a.m.

Technopolis Group Interim Report January 1 - March 31, 2014

Significant Investments in 2013 Drove Profitable Growth

- Net sales rose to EUR 39.7 (29.7) million, up 33.5%
- EBITDA rose to EUR 20.6 (14.0) million, up 47.2%
- The financial occupancy rate was 94.0% (92.2%)
- Earnings per share were EUR 0.07 (0.13), including changes in fair value and
unrealized exchange rate losses 
- Direct result (EPRA) rose to EUR 12.8 (8.0) million, up 56.0%
- Direct result per share (EPRA) was EUR 0.12 (0.10)
- Net asset value per share (EPRA) was EUR 4.84 (5.09)

The company's net profit for the period was EUR 8.8 (10.8) million, including
unrealized exchange rate losses of EUR -3.2 (0.4) million recognized in
financial items due to the weakening of the Russian ruble and positive fair
value changes of EUR 1.0 (3.3) million. 




                                        1-3/  1-3/  1-12/
Key Indicators                          2014  2013   2013
---------------------------------------------------------
---------------------------------------------------------
Net sales, EUR million                  39.7  29.7  126.3
EBITDA, EUR million                     20.6  14.0   64,1
Operating profit, EUR million           20.7  16.7   43,9
Net result for the period, EUR million   8.8  10.8   28,8
Earnings/share, EUR                     0.07  0.13   0.30
Cash flow from operations/share, EUR    0.16  0.11   0.53
Equity ratio, %                         40.1  40.1   40.2
Equity/share, EUR                       4.55  4.53   4.66
---------------------------------------------------------


Earnings and balance sheet figures per share have been adjusted for the share
issue. 




EPRA-based                         1-3/  1-3/  1-12/
Key Indicators                     2014  2013   2013
----------------------------------------------------
----------------------------------------------------
Direct result, EUR million         12.8   8.0   40.5
Direct result/share, diluted, EUR  0.12  0.10   0.47
Net asset value/share, EUR         4.84  5.09   4.94
Net rental yield, %                 7.2   7.2    7.3
Financial occupancy rate, %        94.0  92.2   93.6
----------------------------------------------------


The EPRA-based (European Public Real Estate Association) direct result was EUR
12.8 (8.2) million, an increase of 56.0%. The EPRA-based direct result does not
include unrealized exchange rate gains or losses or fair value changes. The
growth was mainly due to the increase in net sales and EBITDA. 

The company amended its income statement and business segment reporting as of
the beginning of 2014. The comparable figures for 2013 are available on the
company's website and with regard to compared periods, also in this report. 

Keith Silverang, CEO:

“It was already clear at the end of last year that the Technopolis would
experience significant growth in both net sales and EBITDA during the 2014. We
also knew that successful integration of our acquisitions as well as focus on
operations would play a key role in our success this year. 

The first quarter figures provided an indication that we are on track to
successfully execute this plan. Sales in the quarter came in just over 33 % and
EBITDA 47 % higher than last year. Occupancy also rose on the period. We are
confident that we will meet the full-year guidance, although we expect
occupancy-related challenges in a few campuses over the next couple of
quarters. 

Our financial position remained solid. The company's equity ratio, loan to
value and interest cover remained at good levels, and the average interest rate
remained low. 

We have put unprecedented resources in the successful integration of our new
campuses, particularly in Oslo. Our Vilnius campus is already fully integrated
and the transformation of Falcon Business Park into Innopoli 3 is well
underway. In Oslo the focus right now is on ramping up sales and implementing
the Technopolis service concept. 

Looking forward, the Ukrainian crisis has weakened economic prospects in
Russia. This will also influence the Finnish economy and it's growth outlook.
However, I want to emphasize that Technopolis' direct Russian risk is limited
to 4.5% of net sales, 2.9% of EBITDA and 5.0% fair values. Most of the foreign
exchange impact is related to the translation risk of St. Petersburg balance
sheet items. 

As for the remainder of the first half as well as the rest of the year, we will
continue to focus on integration, operations and efficiency. We have made and
we will continue to make value-adding investment decisions in existing campuses
and we will not rule out acquisitions should the opportunity arise. We can
execute these investments with our existing debt and equity resources as well
as strong operational cash flow.” 

Full version of Technopolis Plc's interim report January 1 - March 31, 2014
attached. 

Additional information:
Keith Silverang
CEO
tel. +358 40 566 7785

Distribution:
NASDAQ OMX Helsinki, main news media, www.technopolis.fi

About Technopolis:
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 21 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 1,500 companies and
their 39,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The
Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.

Attachments:

Technopolis Interim Report_Q1_2014.pdf