TECHNOPOLIS GROUP Q4/2011

Technopolis Group

• Value-added real estate & services

• Focus on smart business centers

• Scalable for international growth

• Geographic focus on Nordic-Baltic

• 1 300 customers employing roughly 20 000 people

• 18 knowledge-intensive campuses operating as a chain

• 611 200 m2 of space in use and under construction

Highlights• Demand remained strong in Q4

• Group exceeded its 2011 sales & earnings growth guidance of 11−13 %

• Occupancy, net sales and EBITDA on a higher level than 2010

• Like-for-like rental growth 6.8 %

• Innova 2 nearly full & Helsinki Ruoholahti pre-let rate >50 % in January

• Customers:• Significant 10 year agreement in Estonia with Tax and Customs Board • Pulkovo fully let at the year end• Finnmedi occupancy rate at 99.4 %• Savonia proceeding according to the framework agreement

Financial Occupancy Rate

HMA = Helsinki Metropolitan Area

95,1% 95,1%

91,8%95,3%

96,8%

98,2%

92,6%

98,5%

90,7%

100,0%

85,0%

87,5%

90,0%

92,5%

95,0%

97,5%

100,0%

GROUP FINLAND Oulu HMA Jyväskylä Kuopio Lappeen-ranta

Tampere TALLINN ST. PETERS-BURG

Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011

Financial Key Figures Q4/2011

• Net sales EUR 92.8 (81.2) million, growth 14.4 %

• EBITDA EUR 47.5 (41.4) million, growth 14.8 %

• Equity ratio at 35.8 (37.4) %

• Net rental revenue of investment properties was 7.8 (7.7) %

• Earnings per share (diluted) rose to EUR 0.73 (0.38)

• Net cash flow per share was EUR 0.48 (0.36)

• Equity per share EUR 5.21 (4.69)

• Board’s dividend proposal EUR 0.20 (0.17) per share, (yield 6 %)

Development Projects

Under Construction

Type Area Floor-m2 Investment EUR million

Pre-let rateNov 1, 2011

Pre-let rate,Dec 31, 2011

Due for Completion

Ruoholahti 2 Downtown Helsinki 9,000 27.7 44 % 48 % 5/2012

Yliopistonrinne 2 Downtown Tampere 7,900 22.5 39 % 50 % 9/2012

Innova 2 Downtown Jyväskylä 9,200 19.8 61 % 94 % 2/2012

Hermia 15B University Tampere 4,800 10.9 88 % 100 % 1/2012

Viestikatu 2BOther Campus Kuopio 3,400 4.7 78 % 100 % 1/2012

Total 34,300 85.6

41,4 47,5

0 %

20 %

40 %

60 %

80 %

100 %

0

10

20

30

40

50

Q4/2010 Q4/2011

EBITDA, EUR million

EBITDA %

Sales & Earnings

81,292,8

0

20

40

60

80

100

Q4/2010 Q4/2011

Net Sales, EUR million

7,80 %

0,0 %

2,0 %

4,0 %

6,0 %

8,0 %

Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11

Net Rental Revenue %

Net Rental Revenue % = Total Rental Income from Investment Properties-Direct Costs Fair Market Value of Investment Properties

Equity & Debt

58,0 % 60,0 %

0,0 %

20,0 %

40,0 %

60,0 %

Q4/2010 Q4/2011

Loan to Value

4,93,7

0,0

1,0

2,0

3,0

4,0

5,0

6,0

Q4/2010 Q4/2011

Interest Coverage Ratio

37,435,8

30,0

32,0

34,0

36,0

38,0

40,0

Q4/2010 Q4/2011

Equity Ratio %

2,42 %2,80 %

0,0 %

1,0 %

2,0 %

3,0 %

Q4/2010 Q4/2011

Average Interest Rate

26%

22%

16%

10%

10%

3% 6%

7%

Oulu

HMA

Tampere

Kuopio

Jyväskylä

Lappeenranta

St Peterburg

Tallinn

67 %

24 %

9 %

Oulu HMA Lappeenranta

Technopolis Sites by Region

Q4/2011

• Fair market value of investment properties and properties under construction EUR 905,5 million

• Net market yield of investment properties 31.12.2011 8,0 %

• Fair market value change impact on operating profit: EUR 26,3 million

Q4/2005

• Fair market value of investment properties EUR 249,3 million

20 %

20 %

15 %

18 %

13 %

11 %4 %

OtherindustriesServices

Electronics

Public Sector

IT Services

Software

Life Science

Customer Breakdown

Largest Customers

- As of 31.12.2011 the 20 largest customers were renting 30 % of the company’s space

Customer Customer

Aalto University Norlandia Care

ARK Therapeutics PKC Group

Aspocomp Oulu PSHP

Digia Finland Ramboll Finland

Exfo (Nethawk) Renesas Mobile Europe

Honeywell Savonia University of Applied sciences

Kemira TeliaSonera Finland

Kesko Tieto

Logica Finland University of Jyväskylä

NokiaVTT Technical Research Center of Finland

2012 Outlook

• Real estate in Technopolis’ markets appear stable currently, but uncertainty in financial markets

• Demand is stable in healthcare and educational sectors

• Growth opportunities at home & abroad

• Net sales & EBITDA Guidance for 2012 is +12-15 %

Strategic Targets 2012 - 2016

• Net sales and EBITDA growth 15 % on average per annum

• Net sales outside Finland over EUR 50 million by 2016

• At least 6 % return on capital employed per annum

• Equity ratio over 35 % over the cycle

• Dividend payout 40-50 % of net profit (excluding fair value

changes)

Appendices: Additional Data

Investment properties Dec 31, 2011

Fair value, EUR million

Net Yield, % Floor-m2

Finland Oulu 231.6 8.3 192,900HMA 181.5 6.9 77,600Tampere 120.3 7.4 65,200Kuopio 88.3 8.3 53,900Jyväskylä 75.8 7.9 47,100Lappeenranta 29.3 8.8 27,300

Finland Finland, total 726.7 7.7 464,100

Russia St. Petersburg 52.4 10.1 24,100

Estonia (51% share) Tallinn 64.7 8.4 79,200

Group’s investment properties total 843.8 8.0 567,400

Investment properties under construction* 61.7 several 34,300

Technopolis Sites by Region

* Valued at fair value and recognized on the basis of rate of completion

Net yields are market rates based on the average of two third-party appraisals

Estimated Office Market Q2/2011

7 %

55 %

18 %

15 %

1 %

40 %

0% 20% 40% 60% 80% 100%

Tampere

Lappeenranta

Kuopio

Jyväskylä

HMA

Oulu

Technopolis Other companies

Source of estimated total office space in HMA & growth centers: Catella Property Market Trends 2011 Autumn

Pipeline

* Pre-let rateAll space in surface-m2

Completed Projects Area m2 Investment EUR million

Occupancy Completed

Pulkovo 1 St. Petersburg 19,500 52.8 100 % 6/2011

Helsinki-Vantaa 5B Vantaa 2,900 6.0 100 % 5/2011

Finnmedi Campus Tampere 12,900 27.9 99 % 11/2011Total 39,900 86.7--- --- --- --- --- ---

Under Construction Area m2 Investment EUR million

Occupancy Dec 31,

2011

Due for Completion

Ruoholahti 2 Helsinki 9,000 27.7 48 % 5/2012

Yliopistonrinne 2 Tampere 7,900 22.5 50 % 9/2012

Innova 2 Jyväskylä 9,200 19.8 94 % 2/2012

Hermia 15B Tampere 4,800 10.8 100 % 1/2012

Viestikatu 2B Kuopio 3,400 4.7 100 % 1/2012Total 34,300 85.5--- --- --- --- --- ---

Planned projects Area m2 Status Estimated start

Ülemiste Lõõtsa 8 Tallinn 22,000 Investment decision 01/2012

Pulkovo 2 St. Petersburg 22,400 Planning 02/2012

Viestikatu 7 Kuopio 10,200 Planning 02/2012Total 54,600

Ruoholahti 2, Helsinki

• Started 11/2010

• EUR 27.7 million cost projection including parking

• 9,000 m2 total space

• 48 % pre-lets

• Estimated completion 5/2012

Yliopistonrinne 2, Tampere

• Started 4/2011

• EUR 22.5 million cost including parking

• 7,900 m2 total space

• 50 % pre-lets

• Estimated completion 9/2012

Ülemiste , Lõõtsa 8, Tallinn

• Starts 1/2012

• EUR 22.5 million cost

• 22,000 m2 total space

• 50 % pre-lets

• Estimated completion 10/2013

Hermia 15B, Tampere

• Started 11/2010

• EUR 10.8 million cost projection including parking

• 4,800 m2 total space

• 100 % pre-lets

• Projected completion 1/2012

Innova 2, Jyväskylä

• Started 1/2011

• EUR 19.8 million cost projection including parking

• 9,200 m2 total space

• 94 % pre-lets

• Estimated completion 2/2012

457,9547,7

0

100

200

300

400

500

600

Q4/2010 Q4/2011

Interest-bearing Liabilities, EUR million

Balance Sheet

827,6962,9

0

200

400

600

800

1.000

Q4/2010 Q4/2011

Total Assets & Liabilities, EUR million

727,7 843,8

0

200

400

600

800

1.000

Q4/2010 Q4/2011

Fair Value of Investment Properties, EUR million

Equity Ratio

32,5 %

35,0 %

37,5 %

40,0 %

42,5 %

Q4/07 Q4/08 Q4/09 Q4/10 Q4/11

Fair Value of Investment Properties

0

100

200

300

400

500

600

700

800

900

2007 2008 2009 2010 2011

EUR Million

Lease Portfolio Structure

As of the end of the period the average lease period was 26 (19) months.

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

0-3months 3-6months 6-9months 9-12months Over 12months

Q4/2010

Q4/2011

At the end of the period under review, open-ended leases in the lease portfolio that could be terminated and renegotiated within the next 12 months covered approximately 53.7 (43.3) % of the lease stock

Net Market Yields, %

• Net market yields given by two third-party appraisals

6,0%

7,0%

8,0%

9,0%

10,0%

11,0%

Net Yield of Investment Properties %

Group Finland Estonia / Tallinn Russia / St. Petersburg

Breakdown of Debts

LenderPrincipal EUR million

European Investment Bank (EIB) 141,8

Nordea 79,7

Sampo 69,3

Ilmarinen 47,9

Swedbank AS 40,0

Handelsbanken 35,2

OP-Pohjola Group and Osuuspankki 69,1

European Bank for Reconstruction and Development (EBRD)

30,5

Skandinaviska Enskilda Bank 27,5

Etelä-Karjalan Osuuspankki 3,5

NIB 1,9

Others 1,4

Grand Total 547,7

86%

6%

5% 3%

Bank Loan Leasing Debt

Commercial papers Cheque Limit + others

Maturity of Loans and Fixed-rate Loans

0,0

50,0

100,0

150,0

200,0

250,0

< 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years over 5 years

EUR million

Repayments of interest bearing debt Maturity of credit facilities

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Floating-rate loans (0-12 months)

Fixed-rate loans (> 12 months)

Interest Rates and Loan-to-Value

0,00 %

1,00 %

2,00 %

3,00 %

4,00 %

5,00 %

6,00 %

Q1/

06Q

2/06

Q3/

06Q

4/06

Q1/

07Q

2/07

Q3/

07Q

4/07

Q1/

08Q

2/08

Q3/

08Q

4/08

Q1/

09Q

2/09

Q3/

09Q

4/09

Q1/

10Q

2/10

Q3/

10Q

4/10

Q1/

11Q

2/11

Q3/

11Q

4/11

Technopolis average interest rate Euribor 3 months

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

EUR million

Interest bearing debt EUR million Loan to Value, %

46 %

21 %

18 %

7 %

8 %

Loans without Covenants or Bank Guarantees

Loans with Covenants (equity ratio)

Loans Requiring Bank Guarantees with Covenants

Loans with Covenants

Loans Requiring Bank Guarantees without Covenants

Covenants and Bank Guarantees

Total interest-bearing liabilities Q4/2011 EUR 547,7 million