SRV – Building for lifeCredit investor presentation

Jukka HienonenCEOHannu Linnoinen, Executive vice president, CFO

December 2013

2

Contents

• SRV Group in brief • Strategy • Ownership structure and management • SRV Group 1-9/2013 • Financing and Capital structure • Potential bond issue• Appendix: Selected financials• Disclaimer

3

SRV Group in brief

4

SRV – A different kind of builder

• Offers comprehensive solutions for the built environment

• Operates with customer-oriented SRV Approach

- Innovative project development

- Transparent and networked project management implementation

• Implementer of large-scale projects in Finland, Russia and Estonia

• Industry vanguard in preventing grey economy

• Management and personnel has strong ownership interest

• Founded in 1987• Listed on the Helsinki Stock Exchange in 2007• Personnel approximately 1000• Revenue (2012) EUR 642 million

5

SRV´s competitive edge

Innovativeproject

development

Scalable customer-oriented

project management

SRV Approach

6

Business premises

55 %* (230 M€)

Housing

45%* (188 M€)

International operations in Russia (& Estonia)

Share of Group revenue 18 %(89 M€)

• Offices and retail facilities

• Hotels and specialised facilities

• Logistics facilities

• Infrastructure

• Retail premises in Moscow and St. Petersburg

• Shopping centre management

• Other business premises

• Owner-occupied housing

• Rental housing

• Area development projects

Operations in FinlandShare of Group revenue 82 % (419 M€)

*share of revenue from operations in Finland

Revenue, 1-9/2013

Three pillars of business operations

7

End-investor’s market know-how• End-investor yield-% => sales value • Own investor sales

Management of project capital• Project financing (debt capital)• SRV’s own investment capability• Co-investors• Investment vehicles• Refinancing during operating period

Efficient construction • Eur/m2, construction costs,

quality & implementation time• Scalable business model

Rent revenue management• Eur/m2• Tenant leasing• Strong retailing know-how• Shopping centre management in

Russia

Own project development• Acquisition of plots, zoning• Concepts and business expertise• Target market Finland and Russia

SRV Approach

Core capabilities in real estate development

8

Projectmargin %

Risk level

~ 20%

Construction Taking agreedadditional

responsibilities

Temporaryownership

Developmentprojects

Developer-contractedprojects

Ownership of developer-contractedprojects

Longer termownership

Construction

~ 15%

~ 10%

Project type’s effect on return and risk

9

SRV Group Plc (2008-Q3/2013)Meur Revenue Meur Operating profit

Meur Order backlog Meur Profit before taxes

537391

484

672

466 508642

0

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012 1-9/12 1-9/13

517704175 165

153

215 218230

207

455 482

595

811 828747

911

280 317442

596 610

0

100

200

300

400

500

600

700

800

900

2008 2009 2010 2011 2012 1-9/12 1-9/13Sold order backlog Unsold order backlog

19,2

0,62,8

10,8

7,96,5

23,7

0

5

10

15

20

25

2008 2009 2010 2011 2012 1-9/12 1-9/13

21,8

4,56,9

14,1

12,510,7

32,9

0

5

10

15

20

25

30

35

2008 2009 2010 2011 2012 1-9/12 1-9/130%

1%

2%

3%

4%

5%

6%

7%

8%

10

Strategy

11

• SRV will focus on improving profitability rather than on growth• International Operations will account for more than 20 per

cent of Group revenue• The operating profit margin will reach 6 per cent• The return on equity will be at least 15 per cent• The equity ratio will remain above 30 per cent• A dividend payment equaling 30 per cent of the annual result,

taking into account the capital needs of business operations

SRV’s strategy 2013-2017

12

Strong focus in strategy

Russia is most important growth area- Strong retailing know-how supportsshopping centre development focus

SRV’s target is to increase volume of own developments

- Better long term profitability

Finnish operations in growth centres- Major own developments create

unique opportunities

Core capabilities support profitability- Scalable business model and project capital

resources support also large projects

13

• Kalasatama towers- Six 20-33 storey residential towers connected to a

metro station. Permitted building volume 90,000 m²- City plan gained legal force in June 2013

• Keilaniemi towers- Four 32-40 storey residential towers connected to a

metro station. Permitted building volume 72,000 m²- Appeals on city plan were dismissed in

Administrative Court, a right to file an appeal was dismissed by Supreme Administrative Court

• Residential projects in Matinkylä- Four residential projects in vicinity of a metro

station, the last site Espoon Artesaani will be completed in 12/2013

• Niittykumpu area development- Joint venture with Varma and Sato. Estimated

building volume 135,000 m², SRV’s share 1/4- Zoning estimated to be valid by Q1/2015

• Perkkaa area development- Joint venture with Ilmarinen and Sato. Estimated

building volume 110,000 m², SRV’s share 1/3- Zoning estimated to be valid by Q1/2014

• Development of Tapiola district centre- Large development project with LähiTapiola

• Urheilupuisto/Orion development project- Co-operation agreement with Orion for the

development of industrial area into a residential area in Niittykumpu. Estimated building volume 36,000 m², SRV’s target to purchase at least 40%

Development of SRV’s housing projects in Helsinki area is based on rail traffic connections

14

Why shopping centre development in Russia ?

Russian retail market is lucrative• Consumer spending highest in Europe and driven by;

- Low housing debt levels due privatisations- 13% flat tax rate, moderate 18% VAT- Average income has fourfolded since 2003- Low cost of living (e.g. healthcare, education,

energy, public service)• Growth of retailing highest in Europe

- Moscow market is four times and St. Petersburg market is 75% of Finnish market

Source: Retail Update Russia, www.russiaretail.com

15

Ownership structure and management

16

SRV has an experienced Board of DirectorsIlpo Kokkila• Born 1947, M.Sc. (Eng.) • Chairman of the Board of Directors (1987-)Other positions of trust a.o.• The Finnish-Russian Chamber of Commerce SVKK, Vice

Chairman (2006-) • Kesko Corporation, Board member (2006-) • Central Chamber of Commerce, Council member (2001-

2005) (2006-)• Chairman of Members of the Board of the

Confederation of Finnish Industries EK, (2013-)

Olli-Pekka Kallasvuo• Born 1953, LL.M• Vice Chairman of the Board of Directors (2011-) Primary working experience • Nokia Corporation, various positions (1980-2010),

President and CEO (2005-2010)Other positions of trust • TeliaSonera AB, member of the Board (2012-)

Arto Hiltunen• Born 1958, M.Sc. (Econ.) • SRV Group Plc Board member (2010-) Primary working experience • Suomen Osuuskauppojen Keskuskunta SOK, President and CEO

(2007-2009) • Helsingin Osuuskauppa Elanto, Managing Director (2004-2007) Other positions of trust a.o.• Veho Group Oy, Chairman of the Board (2012-)• Itella Corporation, Chairman of the Board (2011-)• Metsäliitto Group, Board member (2007-)• Metsä Tissue Corporation, Board member (2010-)

Timo Kokkila• Born 1979, M.Sc. (Eng.)• SRV Group Plc Board member (2010-) Other positions of trust • Pontos Oy, Board member (2007-) • Renor Ltd, Board member (2008-) • AS Viru Center, Supervisory board member (2008-)• UAB Mulga, CEO and member of the board (2011-)

Minna Alitalo• Born 1962, M.Sc. (Econ.)• SRV Group Plc Board member (2012-) • Alko Inc. Executive Vice President, Finance (2009-)Primary working experience• Isku Group, Senior Vice President, Finance (2005-2009)Other positions of trust• Federation of Finnish Commerce, committee on tax and

finance policy, member (2009-)

Risto Kyhälä• Born 1963, M.Sc. (Eng.)• SRV Group Plc Board member (2013-) • Commercial Director, Sanoma News Ltd (2013-)Primary working experience• Realia Group Oy, CEO (2006-2012)• Huoneistokeskus Oy, CEO (2005-2012)Other positions of trust• Avara, Chairman of the Board (2012-)• Kaukomarkkinat Oy, Member of the Board (2012-)• Marinetek Oy, Chairman of the Board (2010-)

17

Committed owners including top management & staff

20.11.2013SRV own shares

1.3 M kpl3 %

Kokkila Ilpo9.0 M kpl

25 %Others14.5 M kpl

39 %

Nominee reg.0.6 M kpl

2 %

Kolpi Investment5.5 M kpl

15 %Kokkila Timo

4.5 M kpl12 %

SRV executive team1.4 M kpl

4 %

Corporate executive team's shareholdings in SRVJukka Hienonen Chief executive officer and president 81 800Timo Nieminen Exec. vice president, Project Development 418 266Hannu Linnoinen Exec. vice president, CFO 615 566Juha Pekka Ojala Exec. vice pres., Bus. Operations in Finland 111 234Antero Nuutinen Vice pres., Housing in Finland 34 167Veli-Matti Kullas Vice pres., Project Development in Russia 103 984Jussi Kuutsa Vice pres., Country Director, Russia 16 433

Other members of executive team 20 4321 401 882

percent of shares 3,81 %

18

SRV Group 1-9/2013

19

1-9/

2013 1-9/

2012 change,

meur change,

% 1-12/ 2012

Revenues, meur 507.8 466.2 +41.6 +9% 641.6 Opera ng pro t, meur 21.8 4.5 +17.3 +386% 6.9 Opera ng pro t, % 4.3% 1.0% 1.1 % Pro t before taxes, meur 19.2 0.6 +18.6 +2961% 2.8

Order backlog 1), meur 911.5 747.1 +164.4 +22% 827.8 Equity ra o 1), % 39.3% 28.5% 34.7%

EPS, eur 0.38 -0.01 +0.39 0.02 Share price 1), eur 4.41 3.44 +28% 3.26 Equity per share 1), eur 4.95 4.58 +8% 4.62

1) at the end of the period

January – September 2013 in brief

1) At the end of the period

20

• Group’s revenue and operating profit increased- Revenue EUR 507.8 million, +8.9%- Operating profit EUR 21.8 million, +368%

• Domestic Operations’ revenue and operating profit increased- Profitability improved in 7-9/2013 due to increase in revenue of developer-

contracted housing construction- Profitability of commercial contracting has developed positively

• Domestic housing sales at a good level- Total sales grew, with total of 584 units sold (538). Sales to consumers have

slowed down after March. Housing production’s focus has shifted to rental housing development projects sold to investors

• Concentrating on constructing shopping centres in Russia has borne fruit- International Operations’ revenue and operating profit increased

› Due to sale of a 55 % stake in Okhta Mall, construction of Pearl Plaza, growth in the level of activity, and cost-savings measures

1-9/2013 – Positive profitability trend continued

21

SRV Group PlcMeur Revenue Meur Operating profit

Meur Order backlog Meur Profit before taxes

141170 156

175 179 170158

0

20

40

60

80

100

120

140

160180

200

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

746 704

191 195 230218

194

213207761 746 747

828

727

959 911

570 551 517610

532

0

100

200

300

400

500

600

700

800

900

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13Sold order backlog Unsold order backlog

0.3

2.5

-2.1

2.20.7

13.3

5.2

-4

-2

0

2

4

6

8

10

12

14

16

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

6.9

13.7

1.22.4

-0.4

3.11.8

-2

0

2

4

6

8

10

12

14

16

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

22

Order backlog and new agreements

• Order backlog 911.5 M€ (+22%, Q3/13)- Domestic order backlog 727.8 M€ (676.2

M€). Competitive contracting has been regarded more critically both in commercial and housing construction. The volume of housing contracting has been notably decreased

- International order backlog rose to 183.7 M€ (70.9 M€) as SRV signed project management contracts valued at more than 160 M€ on the realization of the Okhta Mall shopping centre project in St. Petersburg

• New agreements 532.4 M€ (+54%, Q3/13)

New agreements

396

560

812

595

347

532

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 1-9/12 1-9/13

Order backlog

255 272362

439 451

202

303

349

336 277

25

20

10053 184

482

595

811 828

911

0

100

200

300

400

500

600

700

800

900

12/2009 12/2010 12/2011 12/2012 9/2013

Internationaloperations

Domesticoperations;Housingconstruction

Domesticoperations;Businesspremisesconstruction

23

Domestic operationsMeur Revenue Meur Operating profit

Meur Order backlog

7.3

2.73.41.61.9

5.8

5.4

0

2

4

6

8

10

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

121151 140

157129

155135

0

20

40

60

80

100

120

140

160

180

200

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

459 451

329 336 364

336297

313 277

658 662 676

774687

772728

329 325 312439 390

0

100

200

300

400

500

600

700

800

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13Business premises Housing

Business premises

55 %* (230 M€)

Housing

45%* (188 M€)

• Offices and retail facilities

• Hotels and specialised facilities

• Logistics facilities

• Infrastructure

• Owner-occupied housing

• Rental housing

• Area development projects

Operations in FinlandShare of Group revenue 82 % (419 M€)

24

Steps taken to improve profitability of housing construction

• 61% of housing production is production developed by SRV (43%, Q3/12)

- Volume of contracting has been decreased, 550 units under construction (1,212)

- Preliminary agreements made with two housing funds to build 252 housing units; not included in the order backlog

• Volume of sales has developed favorably- Institutional sales have grown, while sales

to consumers suffer from transfer tax hike and growing uncertainty about economy

- SRV has prepared for weak consumer demand. Start-ups have been reduced (202 start-ups in 2013 vs 320 1-9/2012) and criteria for new projects are tightened

- Amount of unsold housing units decreased, 389 units on sale (500)

25

International operationsMeur Revenue Meur Operating profit

Meur Order backlog

0.2

12.3

-0.8

2.4

-1.1-1.9-2.6-4

-2

0

2

4

6

8

10

12

14

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/1320 19 16 18

50

1523

0

10

20

30

40

50

60

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

10285 71

53 40

188 184

0

20

40

60

80

100

120

140

160

180

200

Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

International operations in Russia (& Estonia)

Share of Group revenue 18 %(89 M€)

• Retail premises in Moscow and St. Petersburg

• Shopping centre management

• Other business premises

26

• Pearl Plaza shopping centre opened on 24 August 2013- 1. phase EUR 140 million, ca. 92,000 m2. SRV’s share 50%, SRV’s

investment 22 MEUR - SRV acted as a project management constructor in charge of

commercialisation, value of contracts exceeded 120 MEUR- SRV in charge of shopping centre management- 100% of premises leased out or under final negotiations, targeted

annual net operating income (NOI) ca. 18 MEUR- Designing 2. phase has started, 30% preliminarily leased

• Okhta Mall shopping centre’s construction work started- Part of SRV’s development project in Okhta area of St. Petersburg- 55% sold to Russia Invest (SRV owns 27%). In addition, SRV has a

45% minority share- Investment value 250 MEUR, ca. 144,000 m2. Over 25% leased

with preliminary agreements, targeted annual NOI 33 MEUR- SRV is in charge of commercialisation and a project management

contractor - value of contracts exceed 160 MEUR- SRV invests 44 MEUR during the construction. Cash flows from

project management agreements and the sale of the holding will cover the amount of capital committed to the project

- Letter of intent signed for a EUR 160 MEUR project loan financing- Final building permit received in August 2013

SRV’s main shopping centre projects in Russia

27

Nr. Project1 Admiralteiskaya

2 Galaktika

3 London Park

4 PEARL PLAZA (in operation)

5 Monpansye

6 Pyat ozer

7 Zanevskiy Kaskad, Phase III

8 Evropolis

9 Skandinavia

Nr. Project

10 Piter-Raduga Phase II

11 Port Nakhodka, Phase II

12 Hollywood

13 Hines Outlet Centre

14 Fashion House

15 OKHTA MALL16 Sputnik

17 Sofiyskaya St, 60

Under construction

Planned

Source: Jones Lang LaSalle

4

15

Quality Shopping Centres in St. Petersburg, 2013-15

28

Sales profit

Revenuerecognization ofeliminated partof constructionfeeSRV's share ofprofits of assoc.company duringoperating period

Revenuerecognised partof constructionfee

Accrual ofrevenuerecognised partof constructionfeeConstruction period Construction + operating period (cumul.) Total profit

Construction time- Revenue is recognized according to the stage of completion- The share corresponding to SRV’s ownership is eliminated from the

construction margin

Operating time- The share corresponding to SRV’s ownership is recognized from the

associated company’s profit- The cumulative total return depends on the operating time and the

associated company’s profit

Property sales- The share corresponding to SRV’s ownership is recognized from the

construction margin- The capital gain is recognized

The illustration is based on estimation of the Okhta Mall shopping centre project- The purpose of the illustration is to describe the timing of financial results and it is

based on current knowledge. The actual figures may be significantly different.

Illustration of the estimated cumulative profit of the development project

29

SRV ownership 60 % Investment cost 250 MEURConstruction volume 160 MEUR 160 MEURConstruction profit, %* 10 % 33 MEURRental level average* 90 % 3 YRSExit yield* 10,0 %Period SRV sales SRV profitConstruction period 150 MEUR 6 MEUR Yr 1 26 MEUR 80 %Operating period 31 MEUR 31 MEUR Yr 2 30 MEUR 90 %Constr. profit at exit 10 MEUR 10 MEUR Yr 3 33 MEUR 100 %Exit profit 48 MEUR 48 MEUR Tot 89 MEURSRV cumulative totals 239 MEUR 95 MEUR (39,8 %)

Net rental development

OKHTA MALL -PROJECT; SRV'S FINANCIAL RESULTS

Project loanTarget rent levelOperating period

The variables in the calculation are sample assumptions. The realisation may be significantly different.

An example of the calculation formula of OkhtaMall's cumulative profit development estimate

30

Russia Invest – investment vehicle developed by SRV

• Investment company Russia Invest- Co-investor concept developed by SRV - Russia Invest will invest in SRV’s

development projects in Moscow and St. Petersburg

- SRV will be in charge of project development and acts as a project management contractor

- Partners’ investment commitments 95.5 M€:› SRV, Ilmarinen, Sponda 26 M€, each› Etera 12.5 M€› Onvest 5.0 M€

- Development projects will be funded by project-specific bank loans, the whole investment can rise up to 300 M€

- St. Petersburg’s Okhta Mall is the company’s first investment, ca. 50 M€

Russia Invest

Max 95.5 M€

Okhta Mall

ca. 50 M€55%

Investmentvehicle

Investmentsin Russia

Project loans

Moscow

& St. Petersburg

focus

31

Business premises ready for sale

• Derby Business Park, Espoo- Three building office project developed by SRV, borders the new

intersection of Turku motorway- Over 90% of premises leased, almost 600 parking spaces. Phase I

completed in 8/2012 including among others SRV’s head office. Phase II (including head office of Siemens) completed in 6/2013

- SRV estimates, that 100% leased project will generate 4.2-4.3 MEUR of annual NOI in 2014

- Sale process started

• Etmia II & III –office building, Moscow- SRV’s office development project in Moscow- Located next to Prospekt Mira metro station, Etmia II was

completed in 10-12/2009, extension Etmia III was completed 2012

- Etmia II, “Class A” rated office building and Etmia III “Class B”rated

- SRV owns 50% of joint venture- Project has been leased out in full and current

annual NOI level is ca. 4 MEUR - Sales process under way

32

SRV’s outlook for 2013

• The quarterly change and development of revenue and result in 2013 are affected by the recognition upon delivery of SRV's own projects, the continuously recognised order backlog comprising mostly low-margin contracting, the development of the order backlog's profit margins, the sales volume of self-developed housing production and the completion times of the properties, the number of new contracts, the project development nature of the operations, and the realisation of planned property sales, among other things. Based on current completion schedules, SRV estimates that a total of 539 developer-contracted housing units will be completed during 2013

• The Group's full-year revenue is expected to amount to around EUR 700 million, and profit before taxes is estimated to be at least around EUR 20 million

33

Financing and Capital structure

34

Relationship banking & equity level target

Group’s core financing is based on long term relationships with highly rated banks

- All relationships banks have strong credit rating (S&P: AA- to A-; Moody’s: AA3 to A3)

- SRV follows a common Group borrowing policy with standard financial covenants- 100 M€ committed revolving credit facility is underwritten by relationship banks

and matures in December 2015. Previous revolving credit was also refinanced in 6/2012 with current relationship banks

Equity level maintained above 30%- SRV’s loan financial covenant is

equity ratio (POC-based), i.e. “sold” developer contracting is excluded

- Q3/13 equity ratio 40.4%

35

Debt maturity structure and financing reservesDebt maturity structure 31.12.2012

- Short term debt consists of commercialpaper issued and maturing loans fromfinancial institutions. Commercial paperissued is fully covered by standbyfacilities

- Long term debt consist of housing loans(20+ yr maturities) and loans fromfinancial institutions

Long term reserves support liquidity- Standby committed financial reserves

are 100 M€ syndicated loan maturing in December 2015 and 22.3 M€ current account limits

- Additional financial capacity is availablee.g. by refinancing cashflow generatingprojects

36

Financing reserves & liquidity reserves 2009-Q3/2013Financing reserves 148 M€ (Q3/13)

- Financing reserves consist of cash and undrawn committed loan facities and limits

- Committed facilities are preferredreserves. Therefore SRV has limitedcounterparty risks and in a lean treasuryorganisation

Financial liquidity risk in domesticdeveloper contracting is low

- Construction costs of domesticdevelopment projects (36 M€ Q3/13) are covered by undrawn committedproject loans and sales receivables (42 M€ Q3/13)

- SRV’s liquidity is not adversely affected in case of slow down of housing sales

37

Finance structure and hybrid bond issueAttention has been paid to increasenon-interest bearing debt as financingsource

- Scalable subcontractor based business model has limitations on the use of supplier credits

Hybrid bond has been used to supportequity to assets and gearing ratios

- SRV issued 45 M€ hybrid capital bond in December 2012

- First call date is 28.12.2016

38

SRV Model and its effect on financial ratios

A. SRV has a compareable equity ratio than its peer group companies, but gearing is relatively higher- SRV’s equity to assets ratio was 39.3% (IFRS, Q3/2013) and POC-% 40.4%- SRV’s gearing ratio was 103 (Q3/2013)

B. SRV’s equity ratio and gearing is affected by following factors1. SRV’s strategy to increase developer contracting in housing construction in

Finland› IFRS standard for revenue recognition in developer contracting lowers

the equity ratio and increases the gearing › SRV’s policy to reduce the liquidity risks relating to volume of housing

developer contracting increases construction debt2. Effects of SRV’s business model on gearing and liquidity3. Investments in development projects especially in Russia

39

1. SRV’s strategy is to increase developer contracting in housing construction in Finland

• SRV is among TOP-5 housing construction companies in Finland. - IFRS standard for revenue recognition for developer contracting lowers the equity

ratio and increases the gearing, since also the sold inventory is reported on SRV’sbalance sheet

• SRV’s policy is to reduce liquidity risks related to construction volume of housing developer contracting- SRV constructs its development projects with upto 70% housing corporation loans,

which are most cost efficient long term financing available- 70% loan level policy is a risk mitigator for housing sales downturn- Level of loan covers adequately construction costs of production and thus

completion of unsold housing production has limited effect on SRV’s liquidity- Liquidity risk mitigation policy increases the gearing during construction

1. Developer contracting and financial ratios

40

2. Effects of SRV’s scalable business model on gearing and liquidity• Project management contracting model reduces non-interest bearing current

liabilities on balance sheet- 1) employment related liabilities, 2) trade payables, 3) advance payments and 4) other

current liabilities are lower than those of SRV’s peer group’s- SRV uses also extensively small enterprises in subcontracting

• SRV has a policy to abstain from fixed price traditional contracting. These contracts are awarded with fixed payment schedule

• In project management contracting construction bids are often requested with preliminary plans. This affects the payment schedules and reduces advances as a financing source

3. Investments in development projects (mainly in Russia)• SRV’s capital employed in International operations was 172 MEUR (Q3/13) and mainly

in Russia. Local financing sources prior construction phase are very limited. Since development times are long in Russia, Group’s financial resources can be tied up for a long time in development, construction and ownership phases

2. SRV’s business model and financial ratios

41

• Financing for developer contracting is secured by sales process, project loans and use of general liquidity reserves

• Domestic developer contracting - Housing developments for consumer market are financed with housing loans from

domestic relationship banks. SRV’s policy is to use upto 70% LTV in these projects - For other developments under construction either a project loan is used or

construction is financed with SRV’s general financing reserves• International developer contracting especially in Russia

- Local project loan are preferred for Russian projects. Project loans have long maturities covering also operations time

› Project loan for Pearl Plaza is 95 M€, project loan (LOI) for Okhta Mall is 160 M€. SRV does not guarantee these loans. Project loans in associated companies are not consolidated on SRV’s balance sheet

- Co-investors and Investment vehicles provide additional equity investment capacity- Construction of smaller developments may be also financed with SRV’s financial

reserves

Summary of SRV’s project development financing

42

Rem

aini

ngca

pita

l and

pro

fit

Construction2007-2009 & 2011-12

Operating period2010 -

Constructionfinancing

0 -> 35.9 M€

Russian bankrefinancing

SRV (50%) SRV (50%)

35.9 -> 1.7 M€SRV’s capital employed in

Etmia

Repa

ymen

tof

SRV’

sloa

n an

d in

tere

st

• Etmia construction wasfully financed by SRV with interest bearingsecured loans

• SRV owns 50% of Etmia

• After successfullyleasing out the premises local projectfinancing was arranged

• Refinancing enabledSRV to release most of capital tied in Etmia

EXIT2014?

SRV (50%)

NOI 4 M€ p.a.

Case Etmia: SRV’s financing and subsequent refinancing

33 M€

43

1XX M€

Repa

ymen

tof

part

of in

vest

edca

pita

l

Construction2011-2013

Operating period8/2013 -

Projectloan

95M€

Refinancingxx/201x ?

22 M€

EXIT201?

Rem

aini

ngca

pita

l and

pro

fit

SRV’

sfee

for 1

20 M

€pr

ojec

tman

agem

ent

cont

ract

s• Investment value 140 M€

• Project term loan 95 M€

• SRV’s investment 22 M€

• The value of Pearl Plazaincreases with operatingcashflow

• Capital tied can bereduced during operatingperiod by refinancing the project loan

Case Pearl Plaza; co-investor & project loan

SRV (50%) SRV (50%) SRV (50%)

44

Case Okhta Mall; SRV’s investment vehicle & project loan

Construction2013-2016

Operating periodH1 2016 -

Projectloan (LOI)

160M€

Refinancingxx/201x ?

SRV (60%)

EXIT201?

SRV (60%)

Rem

aini

ngca

pita

l and

pro

fit

XXX M€

SRV’

sfee

for 1

60+

M€

proj

ectm

anag

emen

t co

ntra

cts

• Investment value 250 M€• Project term loan 160 M€• Shareholders’ investment

90 M€• SRV’s commitment during

construction is 44 M€, which is covered by cash flows from project mana-gement agreements and the sale of the holding

• Capital tied can be reduced during operating period by refinancing the project loan

Russia Invest

SRV

55%45%

27%

Sale of the holding (Q2 13)

Repa

ymen

tof

part

of in

vest

edca

pita

l

45

The illustration is based on estimation of the Okhta Mall shopping centre project- The purpose of the illustration is to describe the timing of financial results and it is

based on current knowledge. The actual figures may be significantly different.

Life cycle of selected SRV’s projects in Russia

LOI signed for 160 M€ project loan

95 M€ project loan

33 M€ refinancingSRV’s financing for construction

Construction period Operating period Exit Yr Target SRVYr 1 Yr 2 Yr n NOI %

Okhta Mall 8/2013 - Q1/2016 H1/2016 -> 33 M€ 60 %over 25% let *)

Pearl Plaza 8/2013 -> 18 M€ 50 %100% let/reserved

Etmia 2010 (& 2012) -> 2014 ? 4,2 M€ 50 %fully let

Pearl Plaza II 2014 ? 2015 ? 50 %over 30% let *), no investment decision made

Mitishi 2014 ? 2015 ? 25% **)ca. 30% let *), investor negotiations on-going

*) preliminary lease agreements

**) current ownership

46

Potential bond issue

47

Indicative term sheet

Indicative Terms and Conditions

Issuer SRV Group PLC

Type Senior unsecured

Maturity [5 years]

Amount EUR [50] million

Coupon Fixed

Documentation Stand-alone Finnish

Law Finnish Law

Listing Helsinki

Denominations EUR 100,000 + 1,000

Redemption Bullet

Covenants Negative pledge, Change of control, Cross-default, Pari Passu

Lead Managers Pohjola & Swedbank

• SRV Group is contemplating a senior unsecured bond issue in the near future to extend debt maturity profile, diversify the funding base and to facilitate execution of the growth strategy

• The company is conducting a roadshow to present and discuss the potential transaction with selected key institutional investors.

• 1-on-1 investor meetings and group presentations will be conducted during weeks 49 and 50, ending on Monday December 9th

• The timing of the potential transaction will be thereafter, subject to market conditions

• Pohjola and Swedbank have been mandated as lead managers

48

Key investment highlights

• Well diversified business between business premises and housing in Finland as well as international operations mainly in Russia

• Extensive and attractive housing project pipeline in the Helsinki Metropolitan area based on rail traffic connections to Helsinki city centre

• Highly potential shopping centre development focus in Russia

• Improving revenues and profitability with scalable business model- Stable revenues and profitability of domestic operations- Significant revenue and profitability improvement in international operations

• Strong order backlog 911.5 M€ and substantial development portfolio

• Equity ratio 39.3% (IFRS) and financing reserves of 148 M€ (cash 19 M€and committed loans and limits 129 M€) at the end of 3Q13

• Committed shareholders, including top management and staff

49

Appendix: Selected financials

49

50

SRV Group key figures

Group key figures (IFRS, EUR million)

1-9/ 2013

1-9/ 2012

change,MEUR

change, %

7-9/ 2013

7-9/ 2012

1-12/ 2012

Revenue 507.8 466.2 41.6 8.9 170.0 155.8 641.6 Operating profit 21.8 4.5 17.3 385.8 6.9 -0.4 6.9 Financial income and expenses, total -2.6 -3.9 1.3 -1.7 -1.8 -4.1 Profit before taxes 19.2 0.6 18.6 2960.7 5.2 -2.1 2.8 Order backlog 911.5 747.1 164.4 22.0 827.8 New agreements 532.4 346.5 185.9 53.6 107.9 138.5 594.5 Operating profit, % 4.3 1.0 4.0 -0.2 1.1 Net profit, % 3.3 -0.1 2.0 -1.0 0.1 Equity ratio, % 39.3 28.5 34.7 Net interest-bearing debt 227.1 311.3 -84.2 -27.1 267.9 Gearing, % 102.8 187.7 126.2 Return on investment, % 1) 6.4 1.8 2.2 Return on equity, % 1) 10.4 -0.4 0.5 Earnings per share, EUR 0.38 -0.01 0.39 0.06 -0.04 0.02 Equity per share, EUR 4.95 4.58 0.37 8.1 4.62 Share price at end of period, EUR 4.41 3.44 0.97 28.2 3.26 Weighted average number of shares outstanding, millions 35.5 35.5 35.5 1) In calculating the key ratio, only the profit for the period has been annualised.

51

Segment financials 2013

Domestic Operations (EUR million)

1-9/ 2013

1-9/ 2012

change,MEUR

change, %

7-9/ 2013

7-9/ 2012

1-12/ 2012

Revenue 418.9 411.1 7.8 1.9 155.0 139.7 568.3 - business construction 230.2 221.8 8.4 3.8 88.1 78.9 305.3 - housing construction 188.7 189.3 -0.6 -0.3 66.9 60.7 263.0 Operating profit 13.4 13.1 0.3 2.5 7.3 1.9 14.8 Operating profit, % 3.2 3.2 4.7 1.3 2.6 Order backlog 727.8 676.2 51.5 7.6 774.4 - business construction 451.1 312.1 139.1 44.6 438.7 - housing construction 276.6 364.2 -87.5 -24.0 335.7

International operations (EUR million)

1-9/ 2013

1-9/ 2012

change,MEUR

change, %

7-9/ 2013

7-9/ 2012

1-12/ 2012

Revenue 89.0 55.1 33.9 61.6 15.1 16.1 73.1 Operating profit 11.7 -5.6 17.3 0.2 -1.1 -3.2 Operating profit, % 13.1 -10.2 1.1 -7.0 -4.4 Order backlog 183.7 70.9 112.8 159.2 53.4

Other Operations (MEUR)

1-9/ 2013

1-9/ 2012

change,MEUR

change, %

7-9/ 2013

7-9/ 2012

1-12/ 2012

Revenue 9.2 11.0 -1.8 -16.4 2.9 3.6 14.4 Operating profit -3.3 -3.0 -0.3 -0.6 -1.1 -4.7

52

Segment assets, liabilities and invested capitalAssets change, change,

(EUR million) 30.9.13 30.9.12 MEUR % 31.12.12 Domestic operations 413.6 392.9 20.7 5.3 422.9 International operations 195.7 225.0 -29.3 -13.0 233.7 Other Operations 309.1 280.0 29.1 10.4 311.8 Eliminations -296.0 -272.1 -23.9 -293.0 Group, total 622.4 625.8 -3.3 -0.5 675.4

Liabilities change, change, (EUR million) 30.9.13 30.9.12 MEUR % 31.12.12

Domestic operations 353.6 334.3 19.3 5.8 370.4 International operations 192.3 231.2 -38.8 -16.8 235.2 Other Operations 124.5 139.4 -14.9 -10.7 123.3 Eliminations -268.8 -245.0 -23.9 -265.8 Group, total 401.6 459.9 -58.3 -12.7 463.1

Invested capital change, change, (EUR million) 30.9.13 30.9.12 MEUR % 31.12.12

Domestic operations 286.5 286.2 0.2 0.1 297.4 International operations 171.7 200.7 -29.0 -14.5 200.2 Other and eliminations 8.7 3.4 5.3 158.7 15.7 Group, total 466.9 490.3 -23.4 -4.8 513.3

Return on investment, % 1-9/13 1-9/12 1-12/12

Domestic operations 1) 6.4 6.7 5.6 International operations 1) 9.1 -2.7 -0.2 Group, total 1) 6.4 1.8 2.2 1) In calculating the key ratio only the profit for the period has been annualised

53

Consolidated balance sheetConsolidated balance sheet (EUR million) 30.9.13 30.9.12 change, % 31.12.12

ASSETS Non-current assets Property, plant and equipment 13.0 13.4 -3.1 13.7 Goodwill 1.7 1.7 0.0 1.7 Other intangible assets 0.7 0.6 27.2 0.6 Other financial assets 16.9 10.9 54.4 10.9 Receivables 5.3 12.2 -56.9 1.4 Loan receivables from associated companies and joint ventures 23.8 13.2 80.9 11.9 Deferred tax assets 6.2 5.6 10.1 8.1 Non-current assets, total 67.6 57.7 17.2 48.4 Current assets Inventories 428.6 407.8 5.1 431.2 Trade and other receivables 104.1 110.5 -5.8 127.1 Loan receivables from associated companies and joint ventures 1.1 31.6 -96.5 31.6 Current tax receivables 2.0 5.1 -61.1 4.0 Cash and cash equivalents 19.0 13.2 44.6 33.1 Current assets, total 554.8 568.1 -2.3 626.9 ASSETS, TOTAL 622.4 625.8 -0.5 675.4

54

Consolidated balance sheet

Consolidated balance sheet (EUR million) 30.9.13 30.9.12 change, % 31.12.12 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent company Share capital 3.1 3.1 0.0 3.1 Invested free equity fund 92.2 92.2 0.0 92.2 Translation differences 0.0 0.0 -13.7 0.0 Fair value reserve 0.0 0.0 0.0 Retained earnings 80.3 67.2 19.6 68.9 Equity attributable to equity holders of the parent company, total 175.6 162.4 8.1 164.2 Non-controlling interests 0.6 3.5 -82.3 3.5 Hybrid bond 44.6 0.0 44.6 Equity, total 220.8 165.9 33.1 212.3 Non-current liabilities Deferred tax liabilities 1.7 1.5 15.0 4.1 Provisions 4.8 5.6 -15.1 6.3 Interest-bearing liabilities 114.7 155.4 -26.2 118.5 Other liabilities 0.1 0.0 37.2 0.0 Non-current liabilities, total 121.2 162.5 -25.4 129.0 Current liabilities Trade and other payables 143.9 123.8 16.2 147.6 Current tax payables 2.2 1.4 56.0 0.3 Provisions 2.9 3.1 -3.9 3.7 Interest-bearing liabilities 131.4 169.1 -22.3 182.5 Current liabilities, total 280.4 297.4 -5.7 334.1 Liabilities, total 401.6 459.9 -12.7 463.1 EQUITY AND LIABILITIES 622.4 625.8 -0.5 675.4

55

Disclaimer

This Credit Investor Presentation has been prepared by, and the information contained herein (unless otherwise indicated) has been provided by SRV Group Plc (the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation is being furnished to you solely for your information on a confidential basis and may not be reproduced, redistributed or passed on, in whole or in part, to any other person. Legislation in certain countries may restrict the distribution of the content of this Credit Investor Presentation. The information contained in this Credit Investor Presentation or other information relating to the listing of a bond issue may not be distributed or published in the United States of America, Australia, Hong Kong, Japan, Canada, Singapore or any country or under any circumstances wherein this would constitute a breach of valid legislation or is otherwise not permitted. The bond issue is not, nor will be registered in the United States of America in accordance with the United States Securities Act of 1933, nor will it be registered with any United States of America state authorities. The bond issue may not be offered, sold, pledged or otherwise directly or indirectly handed over to the United States of America, nor to American persons (as determined in the United States Securities Act of 1933, Regulation S), nor on behalf of such persons, with the exception of individuals who are not American persons (as determined in the United States Securities Act of 1933, Regulation S) in transactions outside of the US pursuant to Regulation S.

This presentation does not constitute or form part of and should not be construed as, an offer to sell, or the solicitation or invitation of any offer to buy, acquire or subscribe for, securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investments decision whatsoever. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company nor any of its respective affiliates, advisors or representatives nor any other person shall have any liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Each person must rely on their own examination and analysis of the Company and the transactions discussed in this presentation, including the merits and risks involved.

This presentation includes “forward-looking statements”. These statements contain the words "anticipate", “will”, "believe", "intend", "estimate", "expect" and words of similarmeaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, including without limitation those regarding the demerger plan and its execution, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. Neither the Company nor any other person undertakes any obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.