Hosts My name is Matti-Pekka Koistinen I am a process manager in VVO The other hosts are researche manager Niina Savolainen and sales manager Sari Sivonen. My english and swedish are both quite poor but you can ask what ever you like, we will find the words in the end. Niina can speak fluently enghlish Och Sari kan tala svenska, och frårna om myndighetersnas begränsningarna och andra speciella sakerna kan bäst handlas på svenska. First I am going to show some slides about company VVO and later about Suurpelto area in Espoo. 31.10.2013 1
Safer and better rental housing VVO s Company Presentation 31.10.2013 2
Finland's leading residential rental company Established in 1969, VVO is Finland's leading company specialised in housing rental. Its business is based on the ownership and rental of apartments. We offer a wide range of choice, in both privately financed and state-subsidised housing. VVO staff are experienced property professionals Turnover Operating profit Fair value of housing stock 341 347 m 75,9 m 3.4 billion euros 3
VVO Home Centres serve customers locally across Finland Over 40,000 rental apartments in 45 municipalities Over 70,000 residents Apartments by VVO Home Centre 11 VVO Home Centre responsible for management and rental of apartments 31.10.2013 4
Major VVO shareholders and Board of Directors The biggest VVO:s shareholders are two mutual insurance companies and eight trade unions Ilmarinen Mutual Pension Insurance Company 18.00 % Varma Mutual Pension Insurance Company 15.98 % The Finnish Metalworkers' Union 9.70 % The Finnish Construction Trade Union 8.31 % Trade Union for the Public and Welfare Sectors 8.18 % Service Union United PAM 7.49 % Trade Union of Education in Finland 7.46 % Trade Union Pro 7.27 % Industrial Union TEAM 5.99 % Tehy 1.39 % Others 10.23 % Total 100.00 % VVO 14.2.2013 5
Versatile landlord VVO-group plc VVO Kodit Oy 10,852 apartments VVO Vuokra-asunnot Oy 3,878 apartments VVO Vuokratalot Oy 4,758 apartments VVO Korkotukikiinteistöt Oy 4,323 apartments VVO Asunnot Oy 16,451 apartments Free from all restrictions Non-profit corporation, no profit distribution restriction Non-profit corporation, profit distribution restriction VVO Non-subsidised operations VVO State-subsidised operations Data on 31 Oct 2013 31.10.2013 6
VVO-YHTYMÄ OYJ KODIT 10 966 asuntoa VUOKRA-ASUNNOT 3 838 asuntoa VUOKRATALOT 4 722 asuntoa KORKOTUKIKIINTEISTÖT 4 323 asuntoa ASUNNOT 16 345 asuntoa VAPAA KAIKISTA RAJOITUKSISTA YLEISHYÖDYLLINEN, EI VOITONJAKORAJOITETTA YLEISHYÖDYLLINEN, VOITONJAKORAJOITE VVO VAPAA -LIIKETOIMINTA VVO ARAVA -LIIKETOIMINTA KONSERNISSA ASUNTOJA 40 194 Mikko Suominen 7
VVO's mission, vision and values 2020 31.10.2013 8
Strategic priorities 2012 2015 Our business is to own and rent apartments. Our operations include both privately financed and state-subsidised housing alternatives. Our core product consists of high-rise rental apartments. We offer versatile, affordable housing solutions which cater for the changing needs of residents. We produce good customer service, offering our customers an easy and effortless business experience. We maintain our property cost-effectively and our operating models take account of the characteristics of different forms of financing. We invest in the value growth of properties and ensure profitability. We carry social responsibility and participate actively in public discussion on housing policy. We strengthen our balance sheet by developing and managing financial, real estate portfolio and risk management. We invest in HR management, knowledge and the ability to innovate. 31.10.2013 9
VVO's rental apartment stock meets applicants' demands Active rental apartment applications by type of apartment VVO's apartment distribution 1 room: 16% 1 and 2 room: 28% 2 rooms: 24% 2 and 3 rooms: 12% 3 rooms: 11% 3 and 4 rooms: 5% 1 room: 7,845 2 rooms: 20,408 3 rooms: 9,580 4+ rooms: 2,113 4 rooms and more: 4% New applications in 2012: 49,263 Number of apartments: 39,946 Data on 31 Dec 2012 31.10.2013 10
Tenant structure Length of customer relationship can be influenced by systematic development of tenant structure. Tenant structure Young people aged 18-24: 7% Single people aged 25-39: 15% Single people aged 40-54: 8% Adult households: 15% Families with children: 12% Single parents: 8% Seniors aged 55-64: 17% Seniors aged over 65: 16% Length of customer relationship 1.1 years 3.5 years 6.9 years 4.0 years 3.2 years 3.2 years 8.2 years 11.5 years Average period of tenancy: 5.8 years Data on 31 Jan 2013 31.10.2013 11
Versatile landlord Rent freely determined cost-price rent Free profit distribution restricted profit distribution Cost-price rent Market rent Restricted Free Data on 31 Oct 2013 31.10.2013 12
Versatile landlord VVO-group plc VVO Kodit Oy 10,852 apartments VVO Vuokra-asunnot Oy 3,878 apartments VVO Vuokratalot Oy 4,758 apartments VVO Korkotukikiinteistöt Oy 4,323 apartments VVO Asunnot Oy 16,451 apartments Free from all restrictions Non-profit corporation, no profit distribution restriction Non-profit corporation, profit distribution restriction VVO Non-subsidised operations VVO State-subsidised operations Data on 31 Oct 2013 31.10.2013 13
VVO:n vuokra-asuntokanta 31.12.2013 Cost price Rent freely determined Rent freely determined restricted profit distribution Mikko Suominen 14
Arvonkehitys M 2012 2013 Ero Käypä arvo 3 120 3 351 +231 Arvoero 1 170 1 313 +143 Asunto-omaisuus Mrd Mikko Suominen 15
Nationwide operation Apartments Helsinki area 16 200 Other southern Finland 8 400 West Finland 8 800 East and north Finland 6 800 Apartments 40 194 Real estates 1 832 Middle age 30,1 v. Midle area 56,9 m 2 Resident 70 000 Apartments 2,3 milj. m 2 16
1 020 Apartments under construction
Completed apartmets 2000 2013 In-between model Temporary in Low business cycle You can pay off the Loans and get houses to privately financed Privately finananced Interest-subsidiced 18
Korjaustoiminta 2009 2013 (sis. tulos- ja tasevaikutteiset korjaukset) M Renovation (includes everything) 19
Rahavirtavaikutteiset investoinnit M Investmets (cash flow)
2013 Valmistuneet kohteet (completed) As Oy Helsingin Sörnäistenkatu 12 28 asuntoa (apartments) Keskivuokra (middle rent) 23,92 /m 2 Mikko Suominen 21
2013 Valmistuneet kohteet (completed) As Oy Keravan Eerontie 3 50 asuntoa Keskivuokra 17,00 /m 2 About 30 km to Helsinki with train Mikko Suominen 22
2013 Valmistuneet kohteet (completed) Ohratie 5 F, Vantaa 36 asuntoa Keskivuokra 16,70 /m 2 Mikko Suominen 23
2013 Valmistuneet kohteet (completed) As Oy Helsingin Tuulensuunkuja 3 As Oy Helsingin Plazankuja 5 Yhteensä 110 asuntoa (apartmetns all together) 22,00 /m 2 Mikko Suominen 24
2013 Valmistuneet kohteet As Oy Hyvinkään Merino 28 asuntoa 15,63 /m 2 Mikko Suominen 25
Rakenteilla Espoo As Oy Espoon Ellan, Kilo 42 asuntoa As Oy Espoon Nihtitorpankuja 3, Kilo 88 asuntoa As Oy Espoon Klariksentie 6, Suurpelto 58 asuntoa Mikko Suominen 26
Under construction Vantaa As Oy Vantaan Lauri Korpisen katu 10, Jokiniemi 188 asuntoa As Oy Vantaan Lehtikallio 4, Hämeenkylä 114 asuntoa As Oy Leinelänkaari 14, Leinelä 57 asuntoa Mikko Suominen 27
Under construction other part of Finland (=not south) Järvenpää, As Oy Järvenpään Antoninkuja 3 44 asuntoa Hämeenlinna, As Oy Hml:n Junamestari, Keinusaari 28 asuntoa Tampere, As Oy Tampereen Nuolialantie 44 34 asuntoa Mikko Suominen 28
Under construction outside southern Finland Turku, Signalistinkatu 4 58 asuntoa Jyväskylä, As Oy Jkl:n Väinönkatu 15 65 asuntoa Oulu, As Oy Oulun Kitimenpolku 21 48 asuntoa Mikko Suominen 29
High occupancy rate of/demand for VVO apartments Applications and contracts New applications in 49,263 Active applications 20,865 New contracts 10,909 Turnover Overall turnover 25.8 per cent (taking internal swaps into account) Occupancy rate Financial occupancy rate 97.9 per cent Operational occupancy rate 98.7 per cent Rental income Grew by 6.2 per cent compared to 2012 Average rent grew by 5.6 per cent compared to 2012 Rents rose by an average of 4.9 per cent Average rent 11.89 Data on 31 Dec 2012 31.10.2013 30
High customer satisfaction 1. Best landlord image Customer satisfaction 92% of our customers have recommended VVO as a landlord, or would be prepared to do so Source: Reputation Survey 2012, Innolink Research Oy Customer Satisfaction Survey 2012, Innolink Research Oy 31.10.2013 31
Rental housing in Finland In 2011, approximately 31% of Finns lived in rental housing, mostly in growth centres. Percentage of housing costs of net income 26.7% of those living in rental apartments. The highest share (28%) of net income spent on housing was among those living in the Helsinki Metropolitan Area. In rental housing, the share of net income has remained at 26 27% since 2007. Rental housing's share (%) of residences occupied on a permanent basis is greatest, in population terms, in the larger cities Source: Statistics Finland 31.10.2013 32
Commersial video about rental housing https://www.youtube.com/watch?v=uqp80zc427s http://annualreport2013.vvo.fi/financial-statements/incomestatements http://consti.fi/asuintalot/ideal-putki-ja-kylpyhuoneremontti/ 31.10.2013 33