Sponda Results presentation Q4 2015

1. Sponda Financial Results 2015
4 February 2016

2. 1. Highlights for the Period – Kari Inkinen
2. Forum Acquisition – Pia Arrhenius
3. Business environment and Business Update
– Kari Inkinen
4. Financials – Niklas Nylander
2

3. 1. Highlights for the period

4. Sponda’s Q4 2015
in brief
• The occupancy rate increased to
87.7% (31.12.2014: 87.0%).
• The decline in NOI is due to the
realized property divestments.
• Like-for-like rents were positive
except in Russia.
• Certeum shares and Vuosaari
properties transactions were
closed mid-December 2015.
• Office building in Ilmala was
completed at the end of the year.
4

5. M.O.W.
Fueled by Sponda
• Mothership of Work opened on
1 February 2016.
• M.O.W. is filling up fast - nearly
half of the seats are already
taken.
• Good mix of different types of
companies and freelancers.
• Hits just the right spot with the
flexible space and lease
agreements.
5

6. Development and modernization investments
For greenfield projects Sponda expects 15% development gain.
6
Leasable
area
m²
Estimated
completion
Total
investment
M€
Investment
by the end
of 2015
Pre-let
%
Estimated
market rent
Eur/m²/month
Greenfield developments
Ratina shopping centre, Tampere 53,000 Spring 2018 240.0 51.9 35 N/A
Ilmala office property, Helsinki 18,500 End of 2015 57.0 57.0 100 22-24
Total 71,500 297.0 108.9

7. Sponda Q4 2015: Performance highlights
10-12/15 Change,
%
10-12/14 1-12/15 Change,
%
1-12/14
Total revenue, M€ 57.2 (0.2) 57.3 230.5 (6.6) 246.7
Net Operating Income, M€ 41.3 2.7 40.2 165.7 (5.9) 176.0
Operating profit, M€ 47.8 45.6 32.9 178.1 17.4 151.7
Cash flow from operations/share, € 0.07 (22.2) 0.09 0.36 (2.7) 0.37
Earnings/share, € 0.55 1275.0 0.04 0.78 225.0 0.24
NAV/share, € 5.26 13.1 4.65
EPRA NAV/share, € 5.60 2.8 5.45
Economic occupancy rate, % 87.7 0.8 87.0
Dividend/share, € *) 0.19*) 0.19
7*) Board proposal

8. Sponda’s priorities in 2015
Occupancy
rate
development
Our target is to keep occupancy rate at
the end-of-2014 level at minimum.
Implementing
our strategy
We will continue the non-core property
divestments.
Stable cash
flow from
operations
per share
We aim to maintain our ability to pay
stable dividend.
Focus in
property
development
During 2015, four large property development
projects will be completed. Our target is to start
at least one large development project in 2015.
In March we
announced a
start of Ratina
shopping centre.
8
Board proposal
for fy 2015 is
EUR 0.19.
In 2015 we
sold properties for
EUR 157.6 million and
Certum’s Shares for
EUR 180 million.
At the end of
2015, our
occupancy rate
was 87.7%.

9. Sponda’s priorities in 2016
Occupancy
rate
development
Our target is to increase the
occupancy rate from 87.7%
(31.12.2015) level.
Implementing
our strategy
We will continue the non-core property
divestments and the core property
acquisitions.
Stable cash
flow from
operations
per share
We aim to maintain our ability to pay
stable dividend.
Focus in
property
development
Our target is to start at least one large
development project in 2016 and to keep
our property development gain of 15% on
each project.
9

10. 2. Forum Acquisition

11. Acquisition details
• Sponda signed an agreement to
acquire six properties in the
heart of Helsinki.
• Properties include five office
properties and Forum Shopping
Centre.
• Acquisition price is EUR 576
million.
• Net yield after the first year is
approximately 4.9%.
• Closing is by 29th February
2016.
11

12. 12

13. Properties included in the acquisition
13
Forum shopping centre has:
• 14 million visitors annually;
• 140 shops;
• Annual sales of EUR 200 million;
• 8,000 m² more shopping area
after recent renovation.

14. Properties included in the acquisition
Address Leasable area, m² Occupancy rate (m²), %
Mannerheimintie 14 16,790 96.2
Mannerheimintie 16 and
Yrjönkatu 23
11,016 98.2
Mannerheimintie 18 7,699 89.6
Mannerheimintie 20 22,066 100.0
Yrjönkatu 29 11,955 96.5
Yrjönkatu 31 ja Simonkatu 8 7,393 89.3
Total 76,918 96.3
14

15. Acquisition details
• Total turnover for the six properties was EUR 36.6
million in 2015.
- In 2015, the shopping centre was partly under renovation
and thus the turnover did not cover the full year.
- Estimated turnover with the current occupancy rate for 2016
will be EUR 37.7 million.
• The acquisition is planned to be financed with:
- Cash received from the asset disposals;
- Short-term bridge loan; and
- Possible rights issue.
15

16. 3. Business Environment and
Business Update

17. Finnish Market
• GDP growth in Finland is
estimated to be 0.2% for 2015.
• In 2016, the GDP growth
estimate is 1.2%.
• Property transaction volume
was record-high at EUR 5.5
billion in 2015.
- International investors accounted for 34%
of the deals.
- Only in 2007 transaction volume was
higher.
• The office vacancy rates
remained stable at the end of
the year 2015.
17Sources: KTI, Mof F, Catella Property

18. Market Vacancy Rate in HMA, office
properties
18Source: Catella Property
24.2 %
11.5 %
8.9 %
20.7 %
17.1 %

19. Risk allocation of Sponda’s portfolio
44%
22%
Espoo total 7.0%
Rest of HMA 14%
Vantaa total 1.0%
Total of the office and shopping centres properties portfolio, EUR 2.6 billion (excl. Russia, Property Development,
Logistics)
19
Oulu 3.0%
Tampere 9.0%

20. Segment performance
20
Office Shopping
Centres
Logistics Russia
2015 2014 2015 2014 2015 2014 2015 2014
Net Operating Income, M€ 109.7 103.0 35.7 35.2 9.1 18.9 12.8 15.8
Fair Value of Properties, M€ 1,994.8 1,853.5 733.6 726.0 92.9 205.1 150.7 224.4
Change in Fair Value of
Properties, m€
35.5 18.5 3.2 3.8 (7.4) (6.0) (33.9) (23.8)
Economic Occupancy Rate, % 88.2 88.5 91.3 91.2 68.3 64.9 84.6 90.4
Divestments, M€ 17.9 20.6 - - 100.8 216.7 38.7 -
Acquisitions, M€ 4.7 65.0 - - - - - -

21. Like-for-like development in 2015
Like-for-like net rental growth has been calculated from a portfolio that Sponda has held for 2 years excluding acquisitions, divestments
and property development.
4,0
0,8
0,8 -1,70,7 0,4
-0,1 -1,2
3,3
0,4 0,9
-0,5
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
Office Shopping centres Logistics Russia
Like for Like net rental growth, M€
Change in turnover Change in maintenance expenses Net change
3,0 %
1,8 %
11,8 %
-10,8 %
-2,0 % -3,7 %
1,7 %
26,6 %
3,3 %
1,2 %
27,9 %
-4,3 %
-15,0 %
-10,0 %
-5,0 %
0,0 %
5,0 %
10,0 %
15,0 %
20,0 %
25,0 %
30,0 %
Office Shopping centres Logistics Russia
Like for Like net rental growth, %
Change in turnover Change in maintenance expenses Net change

22. Economic vacancy rate 2009 – 2015
22
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
Q4/2009 Q4/2010 Q4/2011 Q4/12 Q4/13 Q4/14 Q4/15
Office 11.8%
Shopping Centres 8.7 %
Logistics 31.7 %
Russia 15.4 %
Total property portfolio 12.2 %
HMA market office vacancy 13.3 %

23. Lease agreements in Q4 2015
Pcs M² €/m²/month
(avg)*
New agreements that came into force
during the period 74 14 874 11.80
Agreements that ended during the period 88 26 878 13.40
Agreements that were extended during
the period
46 14 074 22.80
*) Agreements that came into force and ended do not necessarily correlate with same sector or space.
• All lease agreements in Finland are linked to CPI.
• Ten largest tenants account for 33% of rental income.
23

24. Investment portfolio development
M€ 2011 2012 2013 2014 2015
Property development
investments
58.5 47.5 14.0 22.0 65.2
Maintenance investments/
Tenant improvements
50.5 28.4 22.6 42.0 37.8
Acquisitions 150.4 53.1 3.1 65.0 4.7
Divestments 14.1 61.8 33.1 237.2 157.6
• We are creating value by property development and active portfolio
management.
• Our aim is to sell non-core assets classified as such either by
location or development potential.
24

25. 4. Financials

26. 26
M€ 10-12/2015 10-12/2014 1-12/2015 1-12/2014
Total revenue 57.2 57.3 230.5 246.7
Expenses (15.9) (16.9) (64.8) (70.6)
Net operating income 41.3 40.4 165.7 176.0
Profit on sale of inv. properties (3.0) 0.0 (4.5) 0.6
Valuation gain / loss 10.3 1.6 23.2 (0.2)
Depreciation of goodwill (0.4) 0.0 (3.0) 0.0
Profit/loss on sales of associated companies 5.2 0.0 5.2 0.0
Profit on sale of trading properties 0.2 0.1 2.8 2.0
SGA expenses (5.6) (5.6) (21.7) (22.1)
Share of profit from associated companies 0.0 (3.5) 10.2 (3.5)
Other operating income/expenses (0.1) (0.2) 0.2 (1.2)
Operating profit 47.8 32.9 178.1 151.7
Financial income and expenses (12.1) (11.7) (48.9) (55.9)
Profit before taxes 35.7 21.3 129.2 95.7
Taxes from previous and current fin. years (7.5) (0.1) (9.3) (1.8)
Deferred taxes 129.9 (7.9) 107.3 (20.4)
Profit for the period 158.0 13.3 227.2 73.6
Profit & loss statement

27. 27
M€
10-12/2015 10-12/2014 1-12/2015 1-12/2014
Changes in yield requirements (Finland) 7.0 12.4 39.2 15.7
Changes in yield requirements (Russia) 0.0 (10.0) (7.4) (10.0)
Profit/loss from property development projects 15.7 3.5 25.4 5.5
Modernization investments (10.2) (14.3) (37.8) (42.0)
Change in market rents and maintenance costs (Finland) 9.8 13.8 30.2 40.3
Change in market rents and maintenance costs (Russia) (12.5) (4.2) (26.8) (19.3)
Change in exchange rates 0.5 0.2 0.3 5.9
Investment properties, total 10.3 1.5 23.2 (3.9)
Real estate funds 0.0 0.1 0.0 (1.8)
Realised gains/losses in re funds 0.0 0.0 0.0 5.5
Group, total 10.3 1.6 23.2 (0.2)
Valuation gains/losses

28. 28
Financing
Q4/2015 Q3/2015 Q2/2015 Q1/2015 Q4/2014
Equity ratio, % 46 41 41 40 41
Average interest rate, % 2.9 2.9 2.9 2.8 2.9
Hedging, % 90 86 86 76 76
Average loan maturity, yrs 2.2 2.3 2.5 1.9 2.1
Average fixed interest rate period,
yrs 2.2 2.3 2.5 2.1 2.3
Interest cover ratio 3.5x 3.4x 3.4x 3.5x 3.3x
Loan to Value, % 46 51 53 53 52
Covenants at:
Equity ratio, 28%
(long-term ER target: 40%
ICR 1.75x

29. Loan maturities, 31 December 2015
• Interest-bearing debt EUR 1,660.9 million
• Unused financing limits EUR 440 million
0
100
200
300
400
500
600
700
2016 2017 2018 2019 2020
M€
Bank loans
Syndicated loans
Bonds
Commercial papers

30. Prospects and financial targets*
Net operating income
Sponda estimates that the net operating income for 2016 will amount to EUR
152–168 million. The estimate is based on the company’s view of property
acquisitions and divestments to be completed and the development of rental
operations during the year.
EPRA Earnings
Sponda estimates that company adjusted EPRA Earnings in 2016 will amount to
EUR 82–98 million. This outlook is based on the development of net operating
income and the company’s estimate of the development of financial expenses.
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.
30*) The prospects do not include the effect of the acquisition of six properties on Sponda’s result

32. Strategy
Main goals of Sponda’s strategy are to simplify the business as a
whole, to have more focused property portfolio, and to grow profitably.
• To achieve the strategic goals, Sponda is:
- Selling the logistics portfolio;
- Selling the Russian portfolio; and
- Investing in prime properties in
Helsinki and Tampere.
32

33. What we set out to do in 2013
33
Sell our Property Funds business
Sell our logistics property portfolio
We have sold logistics properties for
EUR 320 million to-date.
We sold the Funds business and the
properties in the Fund to new logistics
company Certeum. Our shares in
Certeum were sold at the end of 2015.
The main goals are to simplify the business structure, more focused property ownership and
profitable growth. The timeline for these goals was originally set to 3-5 years.
We have sold all but one small office
property.
Sell our properties in Turku
Sell our properties in Russia
We have sold properties for
EUR 49 million.

34. What we set out to do in 2013
34
We have acquired an office property in
Tampere for EUR 63.7 million.
Property acquisitions
Property development business
We have active development projects
ongoing in Helsinki and Tampere for
about EUR 240 million.
The capital received from the disposals will be invested in Sponda’s main markets in
Helsinki and Tampere.
Investments include both property development projects and office and shopping centre properties.
The investments we have made and will make are:
Property acquisitions
After the reporting period we
announced acquisition of six properties
in Helsinki CBD for EUR 576 million.

35. Largest Shareholders 31 January 2016
Major shareholders No. of shares Holding %
1. Oy PALSK Ab 42,163,745 14.89
2. Varma Mutual Pension Insurance Company 29,083,070 10.27
3. HC Fastigheter Holding Oy Ab 28,484,310 10.06
4. The State Pension Fund 3,300,000 1.17
5. OP-Finland Value Fund 1,453,221 0.51
6. Odin Eiendom 1,089,390 0.38
7. Tiiviste-Group OY 1,000,000 0.35
8. Danske Invest Finnish Equity Fund 803,574 0.28
9. SR Arvo Finland Value 768,864 0.27
10. Norvestia plc 718,196 0.25
Nominee-registered shareholders 48.22% of the total
35

36. Overview of the current reporting segments
Shopping Centres
Logistics
Property
Development
Russia
Office
Property
Investment
Companies
% of portfolio4
1 994.8 M€
733.6 M€
92.9 M€
129.7 M€
150.7 M€
21.4 M€
(Equity invested)
6.2%
5.7%
9.1%
n/m
10.3%
Fair value1 Valuation yield2
3%
4%
24%
5%
64%
Notes: 1) Fair value of investment properties as at 31 December 2015.
2) Average valuation yield requirement as at 31 December 2015.
3) Net initial yield of the segment as at 31 December 2015.
4) Share of total fair value of properties as 31 December 2015.
5.9%
4.7%
7.4%
n/m
5.8%
Net initial yield3
36

37. Vacancy 11.2%
Rental level avg 144-180/m²/yr
Yield avg 7.50-8.50%
Vacancy 11.0%
Rental levels 168-216€/m²/yr
Yield avg 6.75-8%
Vacancy avg 13.3%
Rental levels 190-378/m²/yr
Yield 4.8-8.0%
Vacancy avg 18%
Rental levels $275-650/m²/yr
Yield 10-15%
Office market statistics and Sponda’s
holdings
Source: Catella Property, Sponda
3%
8%
85%
<1% 4% 37

38. Lease agreement composition Q4 2015
Lease maturity profile,
% of rental income
Average lease maturity
Note 1: Based on rental income
Tenant breakdown by sector¹
38
0,0 2,0 4,0 6,0
Total
Russia
Logistics
Shopping centres
Office
Q4 2015
Q4 2014
0
5
10
15
20
25

39. 39
Balance sheet
M€ 31.12.2015 31.12.2014
ASSETS
Investment properties 3,101.7 3,142.1
Other non-current assets 61.4 250.9
Fixed assets & other non-current assets, total 3,163.1 3,393.0
Current assets, total 267.7 56.2
Non-current assets held for sale 10.2 0.0
Assets, total 3,441.0 3,449.2
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity, total 1,585.0 1,411.5
Non-current liabilities, total 1,192.0 1,413.6
Current liabilities, total 664.0 624.1
Shareholders’ equity and liabilities, total 3,441.0 3,449.2

40. NAV/share and EPRA NAV/share
40
4,01 4,01
2,82
3,12 3,09
2,95
3,19
3,60
3,68 3,62
3,82
3,42
3,45
3,90
3,58
3,99
3,31
3,49
3,92
3,82
3,92 3,93
4,06
4,17
4,03
4,12
4,45
4,38 4,43
4,50 4,64
4,49
4,56
4,63
4,50
4,65 4,71
5,26
4,56
4,66 4,68
4,83 4,77 4,82 4,88 4,84
5,07 5,12
5,22
5,29
5,18
5,31
5,39
5,30
5,47
5,58 5,60
2
2,5
3
3,5
4
4,5
5
5,5
6
Q1
11
Q2
11
Q3
11
Q4
11
Q1
12
Q2
12
Q3
12
Q4
12
Q1
13
Q2
13
Q3
13
Q413Q114Q214Q314Q115Q215 Q3
2015
Q4
2015
Closing price
NAV
EPRANAV

41. EPRA NAV calculation
5.60 €/share
*) Deferred tax relating to fair valuation of property and interest rate derivatives
41
1583,2 1489,2
1489,2
1515,4
1515,4 1586,5 1586,6
1200
1250
1300
1350
1400
1450
1500
1550
1600
1650
Equity
attributable to
equity holders
of parent
company
Other equity
reserve
Fair value of
financial
instruments
Goodwill
relating to
deferred tax
liability on
properties
Deferred tax
from investment
properties*)
Capitalized
borrowing cost
Total