Toivo Group Plc’s Financial Statement Release 1 January–31 December 2024: Over EUR 200 million in news against the tide in 2024

Financial statement release, 26. February 2025 at 8:00 a.m.

FINANCIAL YEAR 1 JANUARY–31 DECEMBER 2024 KEY EVENTS

• Revenue EUR 39.8 (43.7) million.
• Contracts for building a total of 271 (126) apartments were signed during the period under review.
• 276 (118) apartment start-ups during the period under review.
• 165 (377) apartments were completed during the period under review.
• Toivo’s total trading volume in 2024 was EUR 205 million, broken down as follows:
  • • • Sales of completed properties worth EUR 55 million
      • Start-ups of new balance sheet investments worth EUR 32 million
      • Sales of projects under construction worth EUR 118 million

PROSPECTS FOR 2025

• The company expects the operating profit for the financial year of
  1 January–31 December 2025 to be EUR 6–11 million.
• The company expects the operating profit without changes in values of investment properties for the financial year of 1 January–31 December 2025 to be EUR 6–11 million.

CEO MARKUS MYLLYMÄKI

2024 was a challenging year for property developers and investors, but it also offered opportunities for bold players. Toivo went against the tide and increased its market share in a difficult environment. In addition, operating profit turned out to be fairly good.

Despite the challenges in the real estate market, Toivo signed contracts for more than EUR 200 million and was involved in four of the 20 largest real estate transactions in Finland during the year. This shows that we have strengthened our position in the market. In addition, the company’s expansion in community properties from piloting to production is pleasing.

The housing shortage is already visible in the Helsinki metropolitan area, and the demand for new apartments is growing. Toivo’s market share in non-subsidised apartment building production increased to approximately 10 per cent, which is an indication of successful acquisitions and investments.

Construction costs have stabilised and signs of recovery can be seen in the rental market. This opens up opportunities for long-term investments. Now is the right time to take advantage of the market situation and further strengthen our position.

DEVELOPMENT: The company is prepared for the future and the opening up of the market with a project development portfolio of some 3,200 apartments, of which approximately 91% are located in the Helsinki metropolitan area. During the final quarter, the company signed four

new contracts for new projects, two residential properties and two care facilities.

CONSTRUCTION: The company started four new projects in October–December. Two of the properties are semi-detached house projects. One of the projects was a community property to be built for an investor. In addition, the company began the construction of a new non-subsidised rental building for its own balance sheet.

OWNERSHIP: Toivo handles lease activities and management in-house by using the company’s own Asuntomestarit®. The company’s economic occupancy rate fell to the lowest figures in history in H2/2024, but the occupancy rate has gradually begun to improve.

SELLING: The last quarter of the year was strong in terms of sales for Toivo, and the company succeeded in completing significant property transactions. The largest deals were the sale of EUR 20 million of care facilities under construction to NREP and the sale of a EUR 35 million completed apartment building portfolio to Sirius.

Toivo’s business is capital-intensive, and its strong balance sheet provides the company with excellent conditions for growth. The equity ratio increased to 48.9 per cent and LTV decreased to 43.9 per cent, which indicates the company’s balanced financing structure. The financing base, which mainly consists of long-term bank financing, will also enable strategic investments in 2025.

I would like to thank our customers, partners and the Toivo team for an excellent year in 2024 – the journey will continue strongly in 2025!

MEDIA AND ANALYST CONFERENCE

A public media and analyst conference in Finnish will be held on Wednesday, 26 February 2025, at 10:00 in the form of a webcast. Use the following link to join the webcast:

https://toivo.videosync.fi/q4-2024

The review will be presented by CEO Markus Myllymäki, Finance and risk management director Lauri Rekola and E-Heat CEO Lauri Pispa. The presentation materials will be published later at: sijoittajille.toivo.fi and sijoittajille.toivo.fi/en.

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: Nordic certified adiviser

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 2024 was EUR 39.8 million and its operating profit was EUR 4.5 million.