Toivo Group Plc’s Financial Statement Release 1 January–31 December 2022: A strong result despite the market environment. Operating profit was EUR 15.6 (15.8) million. (Unaudited)

Financial statement release, 28. February 2023 at 8:30 a.m.

FINANCIAL PERIOD 1 JANUARY–31 DECEMBER 2022 KEY EVENTS

• Operating profit EUR 15.6 (15.8) million.
• Contracts for building a total of 342 (985) apartments were signed during the period under review.
• 539 (575) apartment start-ups during the period under review.
• 581 (114) apartments were completed during the period under review.

PROSPECTS FOR 2023

The company expects the operating profit for the financial year of 1 January–31 December 2023 to be EUR 10–17 million.

CEO MARKUS MYLLYMÄKI

The company’s operating profit in 2022 came to EUR 15.6 million, which includes the reduction in value of the company’s residential real estate assets arising from a change in yield requirements, which was announced during the financial year. I am pleased with our result for the year. The balance sheet valuation of the company’s real estate assets provides us a good financial starting point for the financial year 2023.

Toivo is a housing developer that focuses on the full value chain of residential real estate development, construction and ownership. Toivo develops, builds and owns its housing properties but can also implement one or more components of the value chain.

Toivo executes its business model primarily in the Helsinki metropolitan area in energy-efficient concrete apartment buildings and area development projects.

Toivo’s strategy and business model were put to the test by the market forces in 2022. The war in Ukraine, inflation, the general development of costs and rising interest rates have created challenges for companies that develop, build and own housing. Our business model, which we operate with an agile organisation, has given us the opportunity to react to the changes in the market.

In 2022, our company focused on reacting to the operating environment while still keeping our eyes on the future. During the year, we applied a more specific approach to project choices, increased our cash flow business and sought cost savings in fixed expenses and investments.

The disciplined execution of our business model and reacting to the operating environment have produced good results. During the period under review, the company started two pre-sold projects with a total of 122 apartments.

The company looks to the future with a project development portfolio of 1,707 apartments, approximately 91% of which are located in the Helsinki metropolitan area. The company will implement these projects primarily as Energy Class A buildings with geothermal heating.

DEVELOPMENT: The challenging market conditions open up opportunities in development in particular, but we must be very cautious with new opportunities. In 2023, the company will select projects with particular care and analysis. The company has a strong project portfolio and projects will be started when the investment parameters are favourable for the company. During the period under review, the company signed an agreement on the development and acquisition of a total of 28 hectares of land in Espoo. The land in question has significant potential with regard to municipal land use planning.

CONSTRUCTION: During the fourth quarter, the company started two pre-sold projects with a total of 122 apartments. Significant attention is paid to the price and location of projects to be initiated. For new project start-ups, the aim is to tender the construction costs to lower them significantly.

Ownership: With regard to lease activities and management, Asuntomestarit® have succeeded well. The economic occupancy rate for the fourth quarter was 97.8%. Toivo’s competitive, high-quality apartment product combined with the services of Asuntomestarit has proved its price-quality ratio in the challenging market.

Toivo’s business is very capital-intensive, and an optimal financial structure is vital for the company. The company’s equity ratio was 38.4% and the financial loan to value (LTV) rate of its properties was 59.3%.

I want to take this opportunity to thank everyone at Toivo for their excellent and disciplined work and for the growing number of customers who choose a Toivo home.

ANALYST AND MEDIA EVENT

Toivo Group Plc is organising a public analyst and media event in Finnish on Tuesday, 28 February 2023 at approximately 10:00 a.m. as an audio webcast. Guests can join the event at the website https://toivo.videosync.fi/h2-2022-tulos.

The financial statement will be presented by Toivo Group’s CEO Markus Myllymäki, CFO Samuli Niemelä and Director of Real Estate Development Tuomas Hemmilä. Presented material will be available at company website sijoittajille.toivo.fi/en after the event.

Toivo Group Plc

Board of Directors

Further information
Markus Myllymäki
CEO
Toivo Group Plc
Tel. +358 (0)40 847 6206
markus.myllymaki@toivo.fi

Certified Adviser: Danske Bank A/S, Finland branch, +358 (0)50 575 4422

About Toivo
Toivo is a Finnish real estate company that was founded in 2015. Its business consists of developing apartment lots, constructing housing and ownership of apartments. The Company’s business model is unique as Toivo’s business combines the value chain of real estate business from development and construction to ownership, management and rental of a completed property. Toivo manages the entire life cycle of residential real estate with its own team, from raw land development to renting apartments. This way Toivo is able to generate additional value to its customers, shareholders and stakeholders.

Toivo’s strategy is to develop apartments in accordance with the Toivo concept. The apartments aim for a strong development margin and a stable and attractive return, and this way enable long-term ownership and the generation of higher additional value to Toivo’s customers. Toivo has a knowledgeable and experienced team of experts with strong merits in the real estate business. The members of Toivo’s team have been involved in the development and construction of over 17,000 apartments, and they have an average of ten years of experience.

Toivo’s revenue in 2022 was EUR 20.3 million and its operating profit was EUR 15.6 million.