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30.3.2020 | Investor newsletters

Investor newsletter, March 2020

Kojamo’s investor newsletter is primarily published always after an Interim Report and the subsequent roadshow before the beginning of the silent period. The purpose of the newsletter is to discuss the topical issues and themes related to Kojamo as an investment that are relevant for investors. It does not contain new, unpublished information. The newsletter is available on Kojamo’s investor pages or you can subscribe to it via e-mail.

Effects of COVID-19

We have received a lot of questions regarding the effects of corona virus on Kojamo. Kojamo takes the coronavirus seriously and we are committed to looking after the health and well-being of our employees, customers and partners. We will monitor the recommendations issued by the authorities and comply with them.

Our daily operations continue despite of the exceptional circumstances. Our systems enable working from home. Kojamo’s employees have started to work mainly remotely already a couple of weeks ago, and the transition went smoothly. Even though all Lumo Home Centres over Finland have been closed, our customer service serves through digital channels and phone. Additionally, MyLumo digital service, that is in use of our tentants, offers us an effective channel to inform our tenants about any special arrangements.   Thanks to Lumo webstore, renting of apartments continues as normal and it is possible to rent an apartment without physical contact also with help of virtual open house service. To ensure the safety of our residents, we have postponed non-urgent maintenance and repair visits.

We follow the situation closely. It is difficult to estimate the impact on our development projects, but for now all of our projects are proceeding according to plan. It is good to notice, that we pay the contracts based of percentage of completion, which helps in risk management.

Our liquidity is good. At the end of the financial year 2019, Kojamo’s cash and cash equivalents stood at EUR 137.3 (150.1) million and liquid financial assets at EUR 132.1 (172.3) million. 10 (49) EUR 50.0 (50.0) million of the EUR 250 million commercial paper programme was in use at the end of the financial year. In addition, Kojamo has committed credit facilities of EUR 300 million and an uncommitted credit facility of EUR 5 million that remained unused at the end of the financial year.

Year 2019

The Financial Statements Release for January-December 2019 and I was published on 13 February 2020. In the same connection, we updated the strategy as well.  On the same day we published the Financial Statements and Board of Director’s Report, Corporate Governance Statement and Remuneration Statement.

The Annual Report was published on 20 February 2020. We have revised our sustainability reporting, and our report on the year 2019 marks the first time that we have applied the Global Reporting Initiative (GRI) framework and the European Public Real Estate Association’s Sustainability Best Practices Recommendations (EPRA sBPR, 3rd edition).

The publications, webcast recording from the results news conference as well as transcript of the event are available at Kojamo’s Investors website.

Updated strategy

We published the updated strategy in connection with the Financial Statements Release. No major changes were made to the strategy: the strategy period was extended until the end of 2023 and adjustments were made to the strategic focal points and targets. We seek for strong growth by even more profitable business. This is supported by optimised financing structure. We have the capability to pursue growth with a multi-channel approach and quickly react to opportunities. We strongly invest in servitisation and utilize digital solutions in our operations.

Strategic targets 2020–2023 Target
Annual growth of total revenue, % 4–5%
Annual investments, M€ 200–400 M€ /year
FFO/total revenue, % > 36
Loan to Value (LTV), % < 50
Equity ratio, % > 40
Net Promoter Score (NPS) 40

Roadshows and investor meetings

In February, Kojamo met investors in London and took part in Kempen’s seminar in New York in the beginning of March.

Kojamo’s Annual General Meeting was held on 12 March 2020 in Pörssitalo, Helsinki. Resolutions of the AGM and the organizing meeting of the Board of Directors was published as a stock exchange release after the meeting. All the Annual General Meeting’s materials are available here.

Other roadshows and meetings have been changed to conference calls due to the corona situation. Corona’s impact on Finland and Kojamo’s operations have been the main topic during the latest discussions.

Other topical matters

On Friday, 20 March 2020 we announced the establishment of a EUR 2,5 billion EMTN programme. The proceeds from notes issued under the programme will be applied by Kojamo for its general corporate purposes. Such purposes are financing of Kojamo’s business operations during the current strategy period and refinancing of bonds maturing in 2024 and 2025.

In the beginning of March, we announced to have signed a co-operation agreement with SRV to construct 676 apartments in Helsinki and Espoo. On of the projects is a tower building to be located in Kalasatama district in Helsinki, next to the Redi shopping centre. The purchase price for all the properties is approximately EUR 197 million. The completion of individual projects within the agreement is subject to customary terms and conditions.

On 24 Februaryr we published a flagging notification, according to which the holding of Rakennusliitto ry in the Company’s shares and votes has fallen below 5 per cent.

Kojamo’s Board of Directors resolved on the long-term incentive plan’s performance period 2020–2022, which was announced as a stock exchange release.

We published an update to the disclosure policy on 13 February 2020. The central change in the disclosure policy is related to outlook statements and profit warnings. In the future, the disclosure policy does not define separately, which key figures are included in the outlook statement.

Future events

Kojamo’s silent period will start on Tuesday, 7 April 2020. The Interim Report 1 January – 31 March 2020 will be published on 7 May 2020. You can find information about future events and roadshows in Kojamo’s investor calendar.

Maija Hongas, Manager, Investor Relations, Kojamo plc, maija.hongas@kojamo.fi, tel. +358 20 508 3004

Kojamo is Finland’s largest private residential real estate company and a frontrunner in the housing business. Our mission is to create better urban housing. The Lumo brand provides environmental-friendly housing and services in Finland’s biggest growth centres. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo’s shares are listed on the official list of Nasdaq Helsinki. For more information, please visit kojamo.fi/en/

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