Sponda Financial Results 2015 4 February 2016

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

1. Highlights for the period

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

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

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

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

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%.

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

2. Forum Acquisition

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

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.

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

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

3. Business Environment and

Business Update

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.

17 Sources: KTI, Mof F, Catella Property

Market Vacancy Rate in HMA, office

properties

18 Source: Catella Property

24.2 %

11.5 %

8.9 %

20.7 %

17.1 %

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%

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 - - - - - -

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 -1,7 0,7 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

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 %

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

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

4. Financials

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

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

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

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

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

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

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.

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.

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

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

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

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

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

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

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413Q114Q214Q314Q115Q215 Q32015

Q42015

Closing price

NAV

EPRANAV

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

Equityattributable toequity holders

of parentcompany

Other equityreserve

Fair value offinancial

instruments

Goodwillrelating to

deferred taxliability onproperties

Deferred taxfrom investment

properties*)

Capitalizedborrowing cost

Total