eQ Oyj

When the clock starts to be 11 o'clock, we will go through the results of the Q3. I am Antti Lyytikänen, the CEO of the EQ-consert. Unfortunately, Mikko Poskimies, the CEO, was not able to participate in this, but let's take a look at our Q3 results.

Let's start with the traditional way of moving about the results of the concert.

Nettoliikevaihto Eikku-Koserni netto-liikevaihto katsauskauden aikana oli 50,9 miljoonaa. Nettoliikevaihto tullut edellisvuodesta alas kolme prosenttia. Liikevoitto oli 27,6 miljoonaa. Liikevoitto edellisvuodesta on laskenut kahdeksan prosenttia. Osakekohtainen tulos 53 senttiä katsauskaudella ja kulutuotosuuden. Kosernissa myös erinomaisella tasolla 45,7. In Q3, net profit at last year's level was 16.7 million, net profit slightly below was 9.6 million, and net profit per share was 18 cents. Circularly, the net profit was 69.4 million in 12 months. The last partials have been quite stable, about 70 million at the level.

And the turnover is 37.4 million. The SE is at a strong level, as always.

At the end of September, we had 29 million in liquidation. And we had another share at the beginning of October. It was about 17 million, so it shows here in August. Both on the bank account and on the debt side. Stability is at an excellent level. Stability in relation to your own assets is 308.7%. Then, if we look at the business areas in more detail. First, rent management. Varaehoidon nettoliikevaihto katsauskaulu 45.5 miljoonaa. Siellä tuli liikevaihto alas 10 %. Käydään myöhemmin tarkemmin läpi, mutta käytännössä lasku tulee sieltä kiinteistövaraehoidon hallinnointipalkkiosta. Liikevoitto oli 26.9 miljoonaa ja siellä laskua 15 % edellisvuoteen. Kuukolmosen osalta hieman maltillisemmat muutosluvut. Nettoliikevaihto oli 15,2 miljoonaa, laskua 4 %, ja liikevoitto 9,4. Siellä laskua 10 %. Raihaudun kulutuottosuhde edelleen erinomaisella tasolla. Katsauskauden osalta 40,9 % kulutuottosuhde.

Here's a recap of the change in revenue.

Traditional and private equity grew there, but the real estate side got a net of 5.5 million. Management salaries dropped by 6.2 million. And in terms of the period of comparison, the revenue gap change was 700,000. In terms of the period of comparison, we had in the real estate fund arvonlaskentavirhe, jonka myötä sitten viime vuonna niitä tuottosidonnaisia palkkiota oikaistiin ja ne oli vertailukaudella negatiiviset. Private equity puolella hallinnointipalkkiot kasvoi miljoonaa euroa. Tuottosidonnaispalkkiot tuli 600 000 euroa alas. Käytännössä siellä lasku tulee sieltä voitontasausosuuden jaksotuksesta,

which this year has been a bit smaller than the previous year. Here are the wages produced in a slightly different way.

The traditional share of all wages produced was 15%, the value for money was 45%, and private equity was 39%. Private equity and value for money were almost on the same level, in the distribution, so the distribution is partly balanced.

The share of the government salaries is 91% and the profit margin is 9%. In terms of the government salaries, the decrease was 10%.

The traditional and private equity increased by 7%. and the real estate tax rate came down by 23%. The previous year's tax rates were at 4 million.

The net net profit of the real estate sector was 62.1 million, and the profit was 36.5 million. The net net profit of the real estate sector continued to grow. Kasvua oli 356 miljoonaa.

Puhutaan tästä valinnoitavista varoista ilman noita raportointipalveluita. Ja katsotaan tuota piirakkaa, niin perinteisen varainhoidon osuus 39 %, kiinteistö on 20 % ja private equity 41 %. Kun nähdään private equity puolella sitä kasvua on ollut ja kiinteistöpuolella

AUM has come down. Let's go through our investment areas a little more.

In the review period, the interest rates have performed excellently in relation to the comparison index. Not having the same interest rate, everyone has won their own comparison index. The absolute profits have been good in the interest rates. Relatively, Frontier has won its own comparison index. Let's look at the longer term performance, which our customers also look at a lot, so three years and five years, we are at an exceptional level. In the three-year period, 62% of funds have won the comparison index, and in the five-year period, 77%.

Then let's go through the real estate funds.

In terms of profits, we could say that in the community real estate, there has been a turnaround. So, in the review period, the profit is 0.5% positive. In the real estate sector, the review period profit is 7.9% negative. There has also been negative rate changes in the estimates. First of all, in the office, and now, during the third quarter, in hotel apartments. The net marks of the community apartments were 31 million during the survey. As we found out after June, the value of the end of June was reported, and the deposits were deducted, so they are not yet visible in that figure. In the case of a business property, the net marks are negative 24 million euros, and in the case of a business property, the valuation of the end of the summer has been deducted, and we will then pay for it later when it is announced. So, those deducted valuations are not shown here. If we take a look at the bottom of the table, we can see that the impact of the losses has not yet been seen.

On the private equity side, the share price has risen significantly.

We have a 16-euro fund in the share price. The closing in September was 221 million. In the S&P 500 fund, where we are also making a dividend this year, 78 million euros have been collected. The VC2 fund, which was launched last year, made 49 million dollars in closing in September. The dividend for these three funds will continue this year and the final closures will be made

at the end of the year. Then, if we go to the Corporate Finance segment.

So, there, Advium has worked as a sponsor in four companies, and together in a real estate organization during the review period. The last organizations for Advium were Foresit, and now Infactor and Purmo were already informed earlier, and its effect was already present in the numbers with the U2. In terms of revenue, Admium has made a great improvement. Net profit of 4.3 million and profit of 1.5 million. From a rolling perspective, the net profit of Advium in the past 12 months was 7 million euros. Let's remember that last year's Q4 was very strong, as you can see in the rolling figures, and the net profit was 3 million euros.

Käydään meidän sijoitussegmentti läpi.

Nettokassavirta on parantunut edellisvuodesta. Pääomanpalautuksiin voitojako oikeastaan saman verran kuin vertailukaudella. Pääomakutsuja on ollut vähemmän. Sitä kautta nettokassavirta oli 700 000 nyt katsauskauden aikana. Markkina-arvo 16,5 miljoonaa. Tulonlaskelman mielessä segmentti, It made €0.5 million in revenue, which is at the level of last year. Changes can also be very big. Let's remember that in 2021, when the exit market was very strong, the investment segment made over €7 million in revenue. Here you can also see that in terms of cash flow and income, the exit market has been very quiet.

during this year. The ECU market value at the end of September was 581.8 million euros.

The exchange rate has dropped somewhat. I might say that according to my market, the exchange rates have decreased. Osakkeen omistajissa ei suurimpien omistajien osalta muutoksia.

Osakkeen omistajien lukumäärä on hieman tullut tuosta vuodenvaihteesta alas. Näkymien osalta ei muutoksia tehty.

Eli näkymät pidettiin ennallaan. Niinku on sanottu, kiinteistörahoitteen osalta odotetaan, että tämä vuosi on haastava.

As we have seen with private equity, the sale has continued well.

Here we have a draw. Like Sari said, the turnover was 27.6 million euros last year. We can raise it as a draw. Tilinpäätöstiedot ei julkaista neljäs päivä helmikuuta, joten silloin palataan näihin tulosasioihin. Ehkä nyt voitais käydä kysymyksiä läpi, jos on tullut kysymyksiä, niin Kasper voi aloittaa.

Kuuluuko meillä nyt linjoille kysymys myös? Hyvin kuuluu, kiitos. How did the negative value change in the third quarter affect the investments?

In the most part, it was flat. Of course, the currency rate also affected us to some extent. We have investments of more than 40% in dollars. So, in terms of the value change in the currency rate, the biggest impact came from the value change.

There was also a drop in interest rates.

Well, there you can also see the currency exchange rate.

The AUM is also valued in euros. Yes, there have been no significant return on investment.

Has there been any exit?

No, there have not been any return on investment at the previous year's level. Let's say that we are still at the normal level of the longer term.

What we have seen is that the exit market has been quiet.

But we believe that when the market improves a bit, we believe that there will be, as we saw in 2021, when the ketchup bottle opens, there can be a lot of income from the capital funds.

How much do you estimate that in a year?

Let's go a little further, a year and a half, and let's say that the situation is quite normal, which is of course normal for someone, at least more normal than now, so what do you estimate, how much in a year? Don't you just estimate it on your own P&E? Do you mean the cash flows of your own investments? No, I mean in general, how much do you estimate the normal

On the private equity side, we get the revenue from the initial investment. The NAVI doesn't cut it, but in the same way as in AUME, they are reported to the initial investment fund, from where we get the revenue.

And then they are calculated at the investment stage?

After the investment period, so after four years, We get the full salary, and after that, it starts to be 10% per annum. The management salaries start to fall. And it depends on how much there is left of the capital? Yes, it goes all the way. The whole salary goes from the initial investment. In the same way as we collect the money, we know the prices. The management salaries are known to the entire financial system. which is a big upside in the private equity sector. For the concern, there are the revenue-saving salaries, and of course, it is more related to the rate of return, that is, what are the final returns, and how much revenue-saving salaries will be received. It goes according to the normal process. At the moment, we have a manager managerial issues at the beginning of the final funds, the final returns, and then in the decision-making reports, the estimates are published, as in previous years, what are the final returns, and when these would go through the tax office's assessment in the field of health care.

In the field, it usually shows the demand status of the contractor,

The returns have been seen in the society. Has there been a better change in the investor's gratitude?

As Mikko has said, returns are first turned around. Then there are losses. Losses don't come anymore. After that, new marks begin to appear. As seen in the society, returns have turned around. On the part of the transport industry, in Q3, there were negative value changes in the estimates. And then... Was the Innofactor part of the Arvium? Yes, the Innofactor part of the Arvium has already been implemented.

How do you see the rest of the year?

Are there any new projects? There have been new projects. As we have seen before, the uncertainty is about how things will go.

If you think about it, there are signs of tightening. Last year, on June 4th, As we can see from the numbers, they were very strong.

The last question is about the P and the sale of funds. How can you have a six-month contract? Do you think you can get at least the same amount as the previous year?

If you look at the years, in 2021 there was $318 million. In 2023, you can see the difficulty of the retail market. The difficulty was a bit there in the previous years. But as has been said, with Private Equity, the sales view is still

good and in relation to the market, the private equity side has sold well.

If we look at the previous funds this year, the previous funds will not be able to reach the three funds that are now in the reserve.

However, if we look at how the stock price will move forward from the first quarter to the last quarter of the year, the relationship between the first quarter and the second and third quarter is quite solid.

In terms of the first closing, we have the stock management programs. From there, there will be a big boost to the first closing. Fortunately, we have the closing in June. At that stage, a lot has already been collected, but maybe there is a little bit of a line here. But it's good to see this trade show as a whole. Then in July, the last closures to these, and then you will see what has been in the past.

Good, that's what I wanted to ask.

We have a line. Are there any questions on the lines?

Antti Saari-Oopelta, hello. Kasper was already good, but a few more came to mind. You mentioned the easing of the end of June. Do you have any vision of whether they will be paid this year or not?

How do you think about it? In terms of the economy, as you can see from the budget quarter review, Some commodities have been sold, so there the liquidity situation is better. And through that, in the case of social commodities, the payment for the loan payment situation. We will deal with it earlier than in the case of business.

On the business side, in the market, there are few transactions.

There, then, the leasing will still It will take some time for the community to get involved. When we have the final figures and the dates, we will inform you on our website. And of course, in the financial report, you can see the financial statements when they have been paid.

That's right. If we move on, You mentioned that the offices have been a bit of a nuisance, but you also mentioned that you had to change the values on the hotel side in Q3. Is there still a problematic part of the area within the area where there is more concern for the future?

I wouldn't say that there is any concern. Arvioitsija tietysti kattoo tätä transaktiomarkkinaa, että mitä siellä tapahtuu. Meillä kaksi tai kolme hotellikiinteistöä on tuolla liikekiinteistöraastossa.

Onko teidän näkemys edelleen se, että teillä on hinnankorotukset menny maaliin? You have not, in other words, had to opt out of the agreement?

No, we have not had to opt out of it. In the community building, there are longer contracts, central maturities, which in any case is a slightly different type of business.

Yes, exactly. My last question is about the costs. If we look at the revenue management, they increased by 400,000, despite the fact that the top line went down, if we look at last year's Q3. This is quite an surprising phenomenon. If we forget about the revenue management, Is it normal in Q3? Of course, you may have had to raise your salaries so much, but what do you think? If you look at the individual costs, there is no change in the fixed wages.

But maybe in comparison, you can see that last year we had a miscalculation In relation to that, the estimate was increased from the bonus reserve amount last year, as in the comparison period, so that's how the change in the personal consumption comes. Otherwise, of course, at the turn of the year, we always go through the estimate of the bonus reserve amount and then finally

At the beginning of the year, in mid-June, the bonuses that go out will be guaranteed.

So, in a way, the cost of Q3 is a good comparison point for the upcoming forecasts, to put it another way. There is nothing to pay attention to. I'm not talking about last year, but we're talking about Q3 2024.

As we can see in other expenses of the business, there has been growth. I would say that there have been some published services. Some of them will be removed this year and some next year. If we look at other expenses of the business, they are relatively... Of course, the euros Älyttämien isoja on, mutta suhteelliset muutokset näyttää tuossa melko isoilta.

Kyllä, kyllä. Tässä kaikki, mitä minulla oli mielessä. Kiitos.